Russell & Bromley could disappear from high streets with 450 jobs at risk as Next pursues a takeover of the family-owned company.
Next has joined forces with stock clearance specialist Retail Realisation in its pursuit of the 150-year-old shoe and bag retailer, which has 37 stores across the UK.
It is thought that Next will acquire only the brand and intellectual property, while Retail Realisation oversees a fire sale of remaining stock.
The liquidation specialist is linked to investment firm Modella Capital, which purchased struggling high street brands WHSmith, Claire’s and Hobbycraft in the past year.
Russell & Bromley first opened in 1880 in Eastbourne, East Sussex.
The brand was born from the marriage of Elizabeth Russell and George Bromley, both from shoemaking families.
It is currently run by Andrew Bromley, the fifth generation of his family to take charge of the company.
The takeover is the latest in a series of rescue missions from the firm behind Modella Capital and Retail Realisation, which has emerged as a major player behind high street struggles.
Russell & Bromley could be set to disappear from high streets amid a takeover from Next
The retailer is understood to be interested in acquiring the brand and leaving stores to be liquidated
Both firms are part of the Hay Wain group owned by Rcapital co-founder Jamie Constable.
Last year WHSmith sold its 480 high street stores to Modella in a £76 million deal.
The 233-year-old brand was then renamed ‘TGJones’ and continues to operate on the high street.
Modella was prevented from closing large numbers of stores under the terms of the buyout.
The firm specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack.
In August 2024, it also snapped up arts and crafts retailer Hobbycraft for an undisclosed sum.
The chain is due to report strong trading over Christmas, The Telegraph reported.
Modella also took over The Original Factory Shop in February and accessories retailer Claire’s in September.
However, last week it announced that both businesses are being put into administration.
The firm cited ‘highly adverse government fiscal policies’ as well as high inflation and weak consumer confidence for the move – which leaves around 2,500 UK jobs at risk.
Modella bought WHSmith last year in a £76 million deal before re-branding to TGJones
In August 2024 Modella took over arts and crafts retailer Hobbycraft for an undisclosed sum
Last September Modella also purchased Claire’s which still faces an uncertain future
Next has also been busy in recent years, acquiring brands such as Cath Kidston, Joules and Seraphine.
It is one of the few retailers to survive the harsh conditions of the British high street without experiencing any major setbacks.
While its competitors in Debenhams and Topshop fell, Next has managed to find a new audience among Gen Z and millennials and has started to thrive.
Last week the retailer raised its profit forecast again after a bumper Christmas that saw it defy the gloom on the High Street.
It was the fifth upgrade in twelve months after sales came in £51m higher than anticipated.
Overall sales in the nine weeks to December 27 were 10.6 per cent higher than the previous year, which it put down to having more stock after shipping delays.
Sales in the UK grew by 5.9 per cent – which was slower than last year but better than the 4.1 per cent growth that had been predicted.
‘We believe that sales benefited from higher stock levels than last year, when supplier deliveries were delayed by disruption in Bangladesh and global freight networks,’ the update said.
Lord Wolfson, whose insights into the UK’s economic health are closely watched, has steered Next since 2001. In that time sales have soared, as many have struggled.
Next, Retail Realisation and Modella Capital have been contacted for comment.
