The luxury footwear retailer Russell & Bromley has fallen into administration, placing 33 of its shops and around 440 employees in jeopardy.
The Sussex-founded brand, which has been trading since 1879, currently operates 36 stores alongside nine concessions throughout the UK and Ireland.
Administrators have confirmed that the business has been acquired through a pre-pack insolvency arrangement, though the majority of its retail locations face an uncertain future as part of the rescue deal.
Next has stepped in to purchase the heritage brand in a deal worth £3.8million.
The high street giant is paying £2.5million for the Russell & Bromley name and its intellectual property, with an additional £1.3million going towards acquiring a portion of the company’s existing inventory.
The transaction was completed as a pre-pack administration sale, allowing the brand to continue operating whilst transferring ownership to the new buyer.
Under the terms of the acquisition, Next will keep just three of Russell & Bromley’s retail outlets operational – those located in Chelsea, Mayfair and at the Bluewater Shopping Centre.
Next rescues Russel and Bromley in £2.5million deal
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PA IMAGESThe remaining 33 stores and nine concessions face an uncertain future, though they have not yet closed their doors.
Interpath, the firm handling the administration, has indicated that these locations will continue trading whilst its team investigates potential alternatives.
The administrators are actively seeking solutions for the portfolio of shops that were not included in Next’s purchase.
Next stated in announcing the deal: “This acquisition secures the future of a much-loved British footwear brand.”
The remaining 33 stores and nine concessions face an uncertain future, though they have not yet closed their doors
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PAThe company added that it plans to provide “operational stability and expertise” to support the retailer’s next chapter.
Andrew Bromley, the company’s chief executive, acknowledged the difficulty of the decision.
He said: “Following a strategic review with external advisers, we have taken the difficult decision to sell the Russell & Bromley brand.
“This is the best route to secure the future for the brand, and we would like to thank our staff, suppliers, partners and customers for their support throughout our history.”
Will Wright, Interpath’s UK chief executive, said: “Across its 147-year history, Russell & Bromley has been at the forefront of contemporary style.
“We’re pleased therefore to have concluded this transaction, which will preserve the brand and the commitment to quality craftmanship that it has become so well known for.
“Our intention is to continue to trade the remaining portfolio of stores for as long as we can, while we explore the options available.”