Russell & Bromley at risk of disappearing from high street after 150 years

The 150-year-old cobbler Russell & Bromley is at risk of disappearing from the high street as part of a deal to break it up.

About 450 jobs are at risk in a joint takeover by Next and Retail Realisation, a liquidation specialist linked to Modella Capital, the owner of the former WH Smith high street chain.

The pair are preparing to carve up Russell & Bromley, with Next expected to acquire only the brand and intellectual property.

Retail Realisation is on standby to handle the closure of the chain’s remaining 37 stores and a fire sale of stock.

Without the associated intellectual property, the shoe shops would no longer be able to carry the Russell & Bromley name, making it complex to continue trading.

The firm behind Retail Realisation and Modella Capital has emerged as a significant player in the latest phases of high-street distress.

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

However, last week it was revealed that TOFS and Claire’s would call in administrators already after a disappointing Christmas. They are expected to close imminently, resulting in the loss of 2,500 jobs. Retail Realisations may again act as undertakers.

Modella is still operating WH Smith stores, under the new brand TGJones. Under the terms of the deal it struck with WH Smith, Modella is prevented from closing large numbers of stores.

But the one-year agreement expires at the end of March, and privately Modella concedes some of the shops are loss-making.

Modella also owns the arts-and-craft chain Hobbycraft, which is due to report strong trading over Christmas.

The consultancy Interpath is overseeing attempts to find a buyer for Russell & Bromley, which began as a single store in Eastbourne in 1880.

The chain is currently run by fifth-generation family member Andrew Bromley.

Last year, the company embarked on a five-year turnaround plan dubbed “Re Boot” after posting an operating loss of £9m the previous year.

The new strategy includes plans for international expansion, starting with the Middle East.

In a statement in October, Mr Bromley said: “We are currently exploring opportunities to help take Russell & Bromley into the next phase of our ‘Re Boot’ vision.”

“Since the announcement earlier this year, we have made significant progress, positioning us well to build on our momentum and continue along our journey.

“We are looking forward to working with our advisory team to secure the necessary investment to accelerate our expansion plans.”