Russell & Bromley, the 150-year-old luxurious footwear and equipment model, might vanish from the UK excessive avenue after a proposed takeover by Subsequent that’s anticipated to result in the closure of all 37 of its shops.
Round 450 jobs are understood to be in danger beneath a deal that may see Subsequent purchase solely the Russell & Bromley model and mental property, whereas the retailer’s bodily property is wound down.
Subsequent is working alongside inventory clearance specialist Retail Realisation, which is predicted to supervise retailer closures and a hearth sale of remaining stock if the deal completes. Retail Realisation is linked to Modella Capital, a fast-growing participant in excessive avenue restructurings.
Based in 1880 in Eastbourne, Russell & Bromley was born out of the wedding of Elizabeth Russell and George Bromley, each from shoemaking households. The enterprise has remained family-owned for 5 generations and is at the moment run by Andrew Bromley.
The potential break-up marks one other chapter within the fast reshaping of the UK retail panorama, as manufacturers with lengthy buying and selling histories wrestle beneath the mixed strain of weak shopper confidence, rising prices and structural modifications to the excessive avenue.
Modella Capital, through Retail Realisation, has emerged as a distinguished drive behind current retail rescues and collapses. Final yr, it acquired WHSmith’s 480 excessive avenue shops in a £76 million deal, rebranding the chain as TGJones whereas being prevented from closing giant numbers of outlets beneath the phrases of the sale.
The group has additionally invested in Paperchase and Tie Rack, purchased arts and crafts retailer Hobbycraft in 2024, and bought The Unique Manufacturing facility Store and equipment chain Claire’s. Nonetheless, each of these companies had been positioned into administration final week, placing round 2,500 jobs in danger.
In asserting these administrations, Modella cited what it described as “extremely hostile authorities fiscal insurance policies”, alongside excessive inflation and subdued shopper demand.
For Subsequent, the proposed Russell & Bromley deal suits a well-established technique. Over the previous decade, the retailer has snapped up distressed or underperforming manufacturers together with Cath Kidston, Joules and Seraphine, typically retaining the model whereas exiting loss-making bodily retail.
Not like lots of its former rivals, Subsequent has prevented main setbacks on the excessive avenue. Whereas names similar to Debenhams and Topshop collapsed, Subsequent has efficiently pivoted in the direction of youthful shoppers and a stronger digital-led mannequin.
The group raised its revenue forecast once more final week after a stronger-than-expected Christmas buying and selling interval, its fifth improve previously yr. Gross sales within the 9 weeks to 27 December rose 10.6 per cent yr on yr, with UK gross sales up 5.9 per cent — forward of expectations.
In a buying and selling replace, Subsequent mentioned efficiency benefited from improved inventory availability in contrast with final yr, when world freight disruption and provide points in Bangladesh weighed on gross sales.
Russell & Bromley, Subsequent, Retail Realisation and Modella Capital have been approached for remark.
