150 years of history at risk: Russell & Bromley faces its biggest crisis

An Uncertain Future for the Iconic British Shoemaker

The future of Russell & Bromley hangs in the balance. The historic footwear brand, which has been operating since 1880 when it opened its doors in Eastbourne, could be on the verge of imminent collapse. Restructuring efforts led by Interpath have reached a critical point, with advanced negotiations between Next and Retail Realisation to split the business.

The proposal on the table divides the company’s assets: Next would retain the brand and intellectual property rights, while Retail Realisation — a liquidation specialist linked to Modella Capital — would handle the closure of the remaining 37 stores and the liquidation of inventory. This strategy raises a fundamental dilemma: without physical stores operating under the Russell & Bromley name, the brand’s continuity in the market becomes uncertain.

The Human Cost of the Transition

Approximately 450 employees face the possibility of losing their jobs. This figure reflects not only the size of the current operation but also the extent of the retail collapse continuing to hit British shopping streets. The joint administration reinforces a worrying trend: Modella Capital and its subsidiaries have become architects of the disappearance of traditional commerce.

Background: Modella Capital’s Pattern

Modella Capital is no stranger to this type of operation. Over the past 12 months, the company has acquired WH Smith, The Original Factory Shop (TOFS), and Claire’s Accessories. However, the outlook has been discouraging: after a mediocre Christmas season, both TOFS and Claire’s Accessories are on the brink of administration, with imminent closures that could leave more than 2,500 people unemployed.

WH Smith, now rebranded as TGJones, continues operations under Modella, although with contractual restrictions that expire in March. It is speculated that some locations may no longer be financially viable once these restrictions are lifted.

Modella’s portfolio also includes Hobbycraft, a store specializing in Christmas craft supplies and artistic materials, which is expected to report solid results during the holiday sales. This diversification suggests a selective strategy regarding which businesses to preserve and which to liquidate.

Russell & Bromley’s Recovery Efforts Came Too Late

Under the leadership of Andrew Bromley, a fifth-generation member of the founding family, Russell & Bromley attempted an ambitious turnaround. After recording operational losses of £9 million the previous year, the company introduced “Re Boot,” a five-year recovery plan that included global expansion with an initial focus on the Middle East.

In October statements, Bromley expressed optimism: “We are actively seeking opportunities to take Russell & Bromley to the next phase of our ‘Re Boot’ strategy… we have made significant progress.” He called for accelerated investment to fund these growth plans. However, these initiatives seem to have come too late or proved insufficient against market pressures.

What’s Next?

Retail Realisation is prepared to manage the closure of the stores, a task similar to what it already does with other declining brands. Next, Retail Realisation, and Interpath have remained silent publicly about the details of the negotiations, but the numbers speak for themselves: 150 years of business history could end in months, taking with it hundreds of jobs and a piece of British retail history.