Next Acquires Russell & Bromley: 33 Shops Facing Uncertainty
In a significant move, Next has purchased the upscale shoe retailer Russell & Bromley, which recently succumbed to administration. The acquisition is part of a £2.5 million rescue deal, but the future of many employees and stores remains precarious.
Key Details of the Acquisition
– Stores Acquired: Next is acquiring three of Russell & Bromley’s 36 stores.
– Financial Terms: The deal includes an additional £1.3 million payment for existing stock.
– Current Operations: Administrators from Interpath are assessing the fate of the remaining 33 stores, which currently remain operational, along with nine concession outlets employing about 400 staff.
Background and Current Challenges
Andrew Bromley, the chief executive of Russell & Bromley, described the sale as a difficult decision, noting it was vital for securing the brand’s future. Founded around 150 years ago, the company faces intense competition and market challenges, following the trend of other retailers struggling in a tough retail environment.
Recent examples of similar challenges include:
– The Original Factory Shop and Claire’s, both navigating administration processes with potential shop closures and job losses.
– Approximately 1,000 employees were laid off after the collapse of Bodycare in September.
– River Island plans to close some locations to avoid a complete shutdown, amidst a wave of closures that have already seen established names like Debenhams and Wilko exit the high street.
Next’s Vision for Russell & Bromley
In light of the acquisition, Next stated it has secured the future of a much-loved British footwear brand. The company aims to leverage its operational expertise to stabilize Russell & Bromley and restore its focus on delivering premium footwear and accessories.
Locations Acquired
The three stores that Next will take over are situated in prestigious shopping areas near London:
– Chelsea
– Mayfair
– Kent
Despite the challenges faced by Russell & Bromley, Next has maintained a relatively solid performance, proving resilient in the current turbulent retail landscape. This experience may provide the necessary support for the brand’s recovery, as exemplified by Next’s successful acquisition of the maternity fashion label Seraphine and its integration of FatFace concessions.
In conclusion, while Next’s acquisition of Russell & Bromley holds promise for preserving the brand, the uncertainty surrounding the other 33 shops and associated job losses casts a shadow over the future of the chain. As the retail environment continues to evolve, the focus will be on how effectively Next can navigate these challenges and rejuvenate Russell & Bromley’s legacy.