Russell & Bromley may vanish from the high street after serving for 150 years

Russell & Bromley Faces Uncertain Future Amid Potential Breakup

Retail Realisation is prepared to oversee the closure of the last 37 Russell & Bromley stores. Image credit: T.M.O.Buildings/Alamy Stock Photo

Russell & Bromley, a renowned shoemaker with a 150-year legacy, may soon vanish from the high street as discussions continue over a possible breakup of the business.

Approximately 450 employees could lose their jobs if a joint acquisition by Next and Retail Realisation proceeds. Retail Realisation, a liquidation expert associated with Modella Capital—the company behind the former WH Smith high street stores—is involved in the process.

Plans are underway for Next to purchase only the brand and intellectual property, while Retail Realisation stands ready to manage the closure of the remaining stores and liquidate inventory.

If the brand’s intellectual property is sold separately, the stores would no longer be able to trade under the Russell & Bromley name, making continued operations challenging.

Retail Realisation and Modella Capital have become prominent figures in recent high street restructurings.

Modella Capital’s Recent Moves

In the past year, Modella Capital acquired WH Smith stores, The Original Factory Shop (TOFS), and Claire’s Accessories.

However, after a disappointing holiday season, both TOFS and Claire’s Accessories are set to enter administration, with closures expected soon and around 2,500 jobs at risk. Retail Realisation may once again be tasked with managing the closures.

WH Smith stores, now rebranded as TGJones, continue to operate under Modella. The terms of their agreement with WH Smith prevent widespread store closures, but this restriction ends in March, and some locations are reportedly unprofitable.

Modella also owns Hobbycraft, an arts and crafts retailer that is anticipated to report strong Christmas sales.

Interpath, a consultancy, is currently leading efforts to find a buyer for Russell & Bromley, which began as a single shop in Eastbourne in 1880.

Russell & Bromley’s Strategy for Recovery

The business is currently led by Andrew Bromley, a fifth-generation family member.

After recording a £9 million operating loss the previous year, the company launched a five-year recovery initiative called “Re Boot.”

This plan includes ambitions for global growth, starting with expansion into the Middle East.

In an October statement, Andrew Bromley shared: “We are actively seeking opportunities to advance Russell & Bromley into the next stage of our ‘Re Boot’ strategy.”

He added, “Since our earlier announcement this year, we have made meaningful progress, putting us in a strong position to build on our momentum and continue our transformation.”

“We are eager to collaborate with our advisors to secure the investment needed to accelerate our growth plans.”

Next, Retail Realisation, and Interpath have all declined to comment on the situation.