Next seals deal to acquire Russell & Bromley
High street giant Next has stepped in to buy shoe seller Russell & Bromley in the latest in a string of acquisitions by the FTSE 100 retail giant.
The sale will see Next acquire the Russell & Bromley brand, and three of its stores in Chelsea, Mayfair and the Bluewater Shopping Centre, in exchange for £2.5m in cash.
Next will also pay £1.3m for a portion of Russell & Bromley stock, the retailer said.
Russell & Bromley had appointed advisory firm Interpath to lead a restructuring, but the Sunday Times reported the retailer was weighing up a sale after failing to raise the necessary funds.
The transaction is being undertaken via a pre-pack insolvency process overseen by Interpath, the firm said.
The sale will exclude 33 remaining Russell & Bromley stores, which will continue to trade while administrators assess their futures.
The deal is one of several high street takeovers by Next in recent years as the retailer bolsters its market share by turning around struggling brands.
Next bought Cath Kidston in 2023 after the vintage-inspired retailer fell into administration, and brought clothes brand Joules out of administration in 2022.
Next leads UK retail
The acquisition follows a successful festive period for Next, whose shares jumped this month after strong Christmas sales.
Next is the stock exchange’s best performing retail businesses and owns household names FatFace and Made.com, as well as holding e-commerce partnerships with Gap and Victoria’s Secret.
Over the festive period Next’s international sales rocketed by 38.3 per cent, exceeding guidance of 24.3 per cent, with the firm crediting the spike to increased marketing expenditure and the performance of its European partner Zalando.
The boost in commerce generated profits of £51m, leading the group to hike its guidance by £15m to £1.15bn, a year on year increase of 13.7 per cent, marking the third profit upgrade in over five months.
But the chain’s in-store domestic sales were soft over the festive period, with only 1.4 per cent coming from in-person footfall.
Despite targeting Russell & Bromley, Next recently stepped away from a similar deal with LK Bennett, the fashion brand which appointed administrators this month, Sky News reported.
Next beats competitors to deal
Next and Retail Realisation – a stock clearance specialist – had long been the front runners for the takeover, but other competitors were in the running.
Apparel Brands, the Manchester based group which owns Bench and Hype, was also said to be eyeing up Russell & Bromley.
Investment firm Auralis, led by the chief executive of clothing retailer Weird Fish, was also a potential bidder, according to reports.
Russell & Bromley opened its first shop in Eastbourne in 1880 and is currently led by Andrew Bromley, the fifth generation of his family to lead the shoe seller. The firm employs 450 people.
Bromley 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.”
The shoe seller and its advisory firm, Interpath, have confirmed the sale is expected to be approved in court later today.
Next and Russell & Bromley were contacted for comment.