Fried Frank and Hogan Lovells have been called in to advise on Next’s acquisition of 147-year-old luxury shoe and handbag brand Russell & Bromley, which fell into administration last week.
Fried Frank is advising Next on the deal, while Hogan Lovells is representing Russell & Bromley. The rescue deal was valued at £3.8m, with Next paying £2.5m in cash for the brand and three of Russell & Bromley’s 36 stores, and an additional £1.3m for existing stock.
Fried Frank partner Ashley Katz led the team, with assistance from associates Amy Faraday and Eshan Khot.
The Hogan Lovells team was led by partner James Maltby, with support from partner Simon Grimshaw, counsel Camilla Eliott Lockhart and associate David Antrobus.
The family-owned shoe brand, founded in 1879 in Eastbourne, UK, trades from 36 stores and nine concessions across the UK and Ireland. Next will take on three stores in Chelsea, Mayfair and the Bluewater shopping centre – and about 48 store staff. Around 400 jobs are at risk at the remainder of stores and concessions not included in the deal.
The transaction is Next’s latest brand acquisition. The British fashion and homeware retailer now controls several fashion labels, ranging from FatFace, Joules and Made.com, to the UK distribution of Gap and Victoria’s Secret. Next has around 700 stores, primarily selling clothing, footwear and home products.
Russell & Bromley chief executive Andrew Bromley said: “Following a strategic review with external advisers, we have taken the difficult decision to sell the Russell & Bromley brand. This is the best route to secure the future for the brand and we would like to thank our staff, suppliers, partners and customers for their support.”
Will Wright, the UK chief executive of Interpath, which is acting as administrator to Russell & Bromley, said the 33 stores and nine concessions not included in the deal would remain open and continue to trade while the joint administrators continue to assess options for them.
He said: “Our intention is to continue to trade the remaining portfolio of stores for as long as we can while we explore the options available.”
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