Next Buyout Rescues Russell & Bromley, Threatens 400 Job Losses
Footwear retailer Russell & Bromley has been acquired by Next for £3.8 million, securing its brand amidst financial struggles. However, this transaction comes with significant implications: approximately 400 jobs at 33 stores may be at risk, as these locations will not be part of the acquisition.
Details of the Acquisition
Founded in 1879 in Eastbourne, East Sussex, Russell & Bromley operates 36 stores and nine concessions across the UK and Ireland. Following the acquisition, Next has opted to retain only three of these locations: Chelsea, Mayfair, and the Bluewater shopping center. In total, about 48 staff members will remain employed as part of this new arrangement.
Contents of the Deal
- Purchase price: £3.8 million
- Assets included: Russell & Bromley’s brand and approximately £1.3 million of stock
Next has a history of expanding its portfolio, having acquired several brands, including FatFace, Joules, Made.com, and managing UK distribution for Gap and Victoria’s Secret.
Statements from Key Figures
Next expressed optimism about the acquisition, highlighting its commitment to preserving the heritage of Russell & Bromley. The company aims to provide the necessary operational stability and expertise to enhance the brand’s legacy of designing premium footwear and accessories.
Andrew Bromley, the former chief executive of Russell & Bromley, noted the decision to sell was made after a thorough strategic review. He emphasized the importance of this move in securing the future of the brand, thanking staff, suppliers, partners, and customers for their longstanding support.
Will Wright, head of Interpath, the firm administering Russell & Bromley, commented on the ongoing trading situation. The stores not included in the acquisition will continue to operate while exploring future options. He expressed satisfaction in preserving the brand’s commitment to quality craftsmanship, which has been a hallmark of Russell & Bromley since its inception.
Concerns Over Job Losses
The news of the acquisition has raised concerns about job security for many employees. While the remaining stores will continue to trade temporarily, the future remains uncertain for those not included in the deal.
This acquisition marks a significant moment in the history of Russell & Bromley, ensuring its continuity while also highlighting the broader challenges facing retail in a changing economic landscape.
