Russell and Bromley Family Split Over Sale Prospects

Tension has arisen within the family behind Russell and Bromley, as shareholders are divided on the potential sale of the struggling footwear chain. Some favour a sale to Next, while others advocate for a deal with a private equity firm that has pledged to preserve both stores and jobs.

The Bromley family is at a crossroads, with some members pushing for a sale to Auralis, a newly established buy-and-build group. This proposal aims to protect approximately 450 jobs across 37 shops, as well as the company’s head office and distribution centre. In contrast, a sale to Next is likely to involve the closure of most retail outlets, which poses significant risks to employment.

Auralis was created last year by Total Capital Partners, which took control of casual clothing brand Weird Fish in a deal reportedly valued at around £35 million. The new holding company, led by Weird Fish’s chief executive David Butler, has set aside £50 million to target further acquisitions of high street brands.

The family’s internal divisions have emerged as investors express concerns regarding the feasibility of a turnaround strategy led by fifth-generation family member Andrew Bromley. Some shareholders now view a sale as the safest option, given the current demanding retail environment. Reports indicate a rift among family members, many of whom are wary about the company’s future and question the effectiveness of Andrew’s long-term vision.

Interpath Advisory was appointed by the family before Christmas, with the aim of exploring external funding to support a five-year strategic plan. However, following the failure to secure fresh capital, shareholders are now contemplating a complete sale of the business. Observers note that the situation remains fluid, with various private equity firms expressing interest.

A potential sale would represent a historical moment, marking the first instance in more than a century that Russell and Bromley would not be owned by the founding family. The company was established when shoemaker George Bromley married Elizabeth Russell, the daughter of his employer, and opened its first store in 1880 in Eastbourne.

The brand has enjoyed a distinguished reputation, with notable patrons including the Queen and the Princess of Wales. To stabilise its financial situation, Russell and Bromley has considered various options, including seeking outside investment. The retailer owns a substantial portion of its real estate, which had a net book value of around £29 million at the end of 2023. This asset-led exit strategy may be increasingly viable given the retail landscape.

Some family members have gradually stepped back from directorial positions, as evidenced in Companies House filings. Nevertheless, they retain shareholding interests, tying their financial future closely to the company’s performance.