Next Acquires Russell & Bromley in Rescue Deal
Fashion retail giant Next has successfully acquired the renowned footwear brand Russell & Bromley from administration for £2.5 million. This acquisition marks the continuation of Next’s strategy to bolster its portfolio by integrating a historic family-run business with a legacy spanning 145 years.
Details of the Acquisition
Next’s recent announcement highlighted that they have secured ownership of both the Russell & Bromley brand and its intellectual property. Although the company oversees the brand, it plans to retain only three of the existing 36 Russell & Bromley storefronts located in Chelsea, Mayfair, and Bluewater Shopping Centre. This decision casts uncertainty on the future of the remaining 33 shops and nine concessions, as well as the jobs linked to them.
Immediate Impacts on the Workforce and Retail Locations
- Current operations at Russell & Bromley include 36 retail stores and nine concessions across the UK and Ireland, employing around 440 personnel.
- Next intends to discontinue operations at a majority of these locations, leaving the status of 33 shops uncertain.
- Administrators for Russell & Bromley are actively assessing options for the remaining sites, which will continue to operate while alternatives are explored.
Future Prospects for the Brand
In a bid to retain a connection with Russell & Bromley products, Next has revealed plans to incorporate some of the brand’s footwear into its own retail offering, having paid £1.3 million for select stock.
Next expressed its commitment to preserving the heritage of the Russell & Bromley brand, stating the acquisition ensures the future of what it describes as a beloved British footwear manufacturer. The company aims to provide the operational stability necessary for Russell & Bromley to focus on its mission of crafting premium footwear and accessories.
Statements from Management
Andrew Bromley, CEO of Russell & Bromley, commented on the difficult choice to sell the brand, noting a strategic review had led to the conclusion that this was the best pathway to secure its future. He expressed gratitude to all stakeholders, including staff, suppliers, and customers, for their support throughout the brand’s history.
Background
This acquisition is part of a broader trend where Next has previously bought several brands at low prices, further expanding its reach within the retail market. Other notable acquisitions include Cath Kidston, Joules, and Seraphine, alongside its ownership of Made.com and the fashion brand FatFace.
As the UK retail landscape evolves amid changing consumer habits and pressures, Next’s strategic moves continue to shape the industry, particularly concerning established brands facing economic hurdles.
Source: Original Article
