A major UK retailer has collapsed into administration (Image: Getty)
A major UK retailer has closed all of its remaining stores after collapsing into administration with debts of more than £59 million, bringing an end to 146 years of trading on the British high street.
Luxury footwear and handbag retailer Russell & Bromley, founded in 1880 by George Bromley and Elizabeth Russell, has now shut all branches that were not included in a rescue deal with fashion giant Next. The closures follow a phased wind-down of the business, leaving just three stores operating under the new ownership.
Russell & Bromley closed all remaining stores (Image: Getty)
Administrators from Interpath Advisory confirmed that the remaining 33 stores have now closed their doors permanently, resulting in around 400 redundancies. The majority of the retailer’s workforce employed at the non-transferring stores has now lost their jobs.
A spokesperson for the joint administrators said: “Following the announcement regarding the sale of the Russell & Bromley brand and certain assets to Next plc, the joint administrators can confirm that a phased closure programme for the remaining Russell & Bromley stores is now complete.
“All stores that did not transfer to Next as part of that transaction closed. Regrettably, these closures mean that the majority of employees working in the non-transferring stores have been made redundant.
“The administrators and their teams are engaging closely with all affected staff and will be providing support throughout the process, including assisting individuals in submitting claims to the Redundancy Payments Service.”
The family-owned retailer entered administration earlier this year after years of mounting financial pressure.
Next acquired the Russell & Bromley brand, selected assets and three stores located in Chelsea, Mayfair and Bluewater shopping centre in Kent through a pre-pack administration deal. However, the remaining 33 stores and nine concessions were not included in the transaction and have now permanently closed.
Court documents show the company owed approximately £59.3 million when administrators Will Wright and Chris Pole of Interpath Advisory were appointed.
The business is understood to have accumulated losses of around £20 million over the past two years as falling sales, rising operating costs and weak consumer demand took their toll.
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Administrators said the company had historically relied on existing cash reserves to fund operations, but in recent years was forced to sell a number of freehold properties to support its loss-making business.
They said: “The group was relatively highly loss-making, with these losses due to a combination of falling sales, increasing operational costs, and a relatively high fixed cost base.
“Further to this, the wider UK market has been difficult for retail businesses with challenging trading conditions characterised by high inflation and suppressed consumer demand.”
The retailer’s statement of affairs, released three months after the collapse, estimated a total deficiency of £35.7 million.
Administrators also revealed that around £2.1 million had been drawn under the company’s trade finance facility before NatWest exercised its right of set-off immediately after the administration began, using cash held by the business to clear the outstanding balance.
Russell & Bromley also owed HM Revenue & Customs around £3.2 million. Administrators said HMRC may receive distributions from other group insolvencies related to the same VAT claim, while unsecured creditors may eventually receive a dividend once assets have been realised and costs paid, although the final amount has yet to be determined.
Known for its premium leather footwear and handbags, Russell & Bromley became a favourite among high-profile figures, including the Princess of Wales, Katie Holmes and Billie Piper. Despite its long-standing reputation for quality and craftsmanship, the retailer struggled to recover following the pandemic and had remained unprofitable since 2019.