Next Eyes Russell & Bromley Acquisition Amid Turnaround Efforts

Retail giant Next has recently made a significant acquisition move, with reports indicating that the premium footwear chain Russell & Bromley is now on its shopping list. Next has a history of acquiring brands, holding majority stakes in or owning companies such as Reiss, FatFace, Joules, Cath Kidston, Made, and Laura Ashley’s homewares. While Next possesses a substantial war chest for acquisitions, it is not the only company interested in Russell & Bromley.

According to Sky News, the 145-year-old family-owned footwear and accessories business is actively seeking investors. Next is reportedly one of several parties engaged in discussions with Russell & Bromley's advisers regarding a potential deal. The identities of the other potential buyers have not been disclosed.

Russell & Bromley confirmed this autumn that it had appointed advisory specialist Interpath to assess funding options for the business. CEO Andrew Bromley, a fifth-generation member of the family to run the chain, stated in October that the company is exploring opportunities to advance the "Re Boot" vision. Bromley highlighted the "significant progress" made since the announcement of the plan earlier in the year, positioning the company well to build momentum and continue its journey. The objective is to secure the necessary investment to accelerate expansion plans.

The company, which operates stores and concessions throughout the UK and Ireland, is currently undergoing a five-year turnaround plan launched earlier this year. This "Re Boot" plan focuses on refining the brand proposition, elevating product offerings, streamlining operations, and fueling rapid market expansion. In September, the shift in strategy became evident with a unique marketing campaign featuring pop star-turned-actress Billie Piper. This campaign, overseen by creative director Daniel Beardsworth-Shaw (the brand's first CD, appointed in 2024), marked an unusual move for the brand, which had not previously utilized celebrity ambassadors or surreal campaign concepts.

In its latest accounts, covering 2023, Russell & Bromley reported a decline in financial performance. Turnover decreased to just under £40 million from nearly £45 million in the prior year. The company recorded an EBITDA loss of £3.2 million, following a narrower loss of £404,000 the year before. The loss after tax also widened to £6.9 million, compared to a loss of £4.6 million in the previous year. The company provided no details regarding the reasons for the downturn.

These accounts were filed in early November 2024, and the next filing, covering 2024, is due before the end of this year. Whether Next or another business ultimately acquires or takes a stake in the company will significantly impact its future direction. Next’s successful management of Reiss demonstrates a strong track record in the premium sector in which Russell & Bromley operates.

Next declined to comment on the Sky News report. Attempts to reach both Russell & Bromley and Interpath for comment were unsuccessful.