High street fashion giant Next has bought shoe retailer Russell & Bromley which had collapsed in to administration.
Next paid £2.5m in a rescue deal for the upmarket British footwear and accessories seller — but the future for most of the chain’s current staff and shops remains uncertain.
Next will own the brand and three of Russell & Bromley’s 36 stores, as well as some existing stock for which it is paying an additional £1.3m.
Administrators Interpath said it was considering the future of the remaining stores, which for the moment remain open, as well as nine concession stores which all employ around 400 people.
Russell & Bromley’s chief executive Andrew Bromley said it was a “difficult decision” but the sale of the brand was the best way to secure its future.
The company is around 150 years old but has become the latest to struggle in a tough retail environment.
It joins other brands in a familiar path to largely disappearing off the high street via a process of administration, which means companies are often broken up and the highest value assets sold off to the highest bidder.
The Original Factory Shop and accessories retailer Claire’s are both currently going through a process of administration, with site closures and jobs at risk. Around 1,000 people lost their jobs after Bodycare collapsed in September, while River Island will close some stores to avoid a total collapse. The woes all come after a tranche of high profile closures such as Debenhams and Wilko.
In a statement, Next said it secured “the future of a much loved British footwear brand.”
“Next intends to build on this legacy and provide the operational stability and expertise to support Russell & Bromley’s next chapter, allowing it to return to its core mission: the design and curation of world-class, premium footwear and accessories for many years to come.”
The three stores Next will acquire are in high-end shopping destinations in or around London: Chelsea, Mayfair and Kent.
Next has seen relatively solid performance in the current turbulent retail landscape – unlike Russell & Bromley which has been loss-making in recent years.
Its saviour has experience in failing circumstances: last year, Next bought out of administration fashion maternity label Seraphine, and began rolling out its FatFace concessions a few years after snapping it up.
