The Newshound

Russell & Bromley owes unsecured creditors £37.5m after collapse into administration left all stores shut

Unsecured creditors face the entire £37.5m loss after Next acquired the Russell & Bromley brand in a pre-pack deal, saving only three flagship stores.
Unsecured creditors face the entire £37.5m loss after Next acquired the Russell & Bromley brand in a pre-pack deal, saving only three flagship stores.

British footwear institution Russell & Bromley, founded in 1873, left unsecured creditors owed £37.5 million when it fell into administration in January 2026. Administrators Interpath confirmed a dividend may be paid, though the exact amount depends on what further asset realisations bring in. Next snapped up the brand through a pre-pack arrangement, keeping just three flagship stores open while the rest shut by April.

Employees' preferential claims of £134,000 and HMRC's £2.8m VAT and payroll debt will both be settled in full.

The 38 stores excluded from the Next deal were operated by Retail Realisation LLP, generating £13.1m in post-administration sales and a £4.9m trading surplus before they closed.

NatWest, the sole secured creditor, is owed nothing — it offset the £2.1m due to it against cash already sitting in Russell & Bromley's own bank account.

MoreThe SunBritish shoe chain 'owes £37.5million’ after plunging into administration and shutting all its stores - The Suntheindustry.fashionRussell & Bromley owes unsecured creditors £37.5mscottishdailyexpress.co.ukIconic UK card and pottery stores closing down as shoe giant enters administration - Daily ExpressDaily RecordShoe chain collapses into administration 'owing £37.5m' as stores shut
Read today's full feed at The Newshound →