Next explores Russell & Bromley takeover with stock clearance partner

Next has reportedly partnered with a stock clearance specialist as part of potential takeover plans for shoe retailer Russell and Bromley.

According to Sky News, the retailer is working alongside specialist retail advisory firm Retail Realisation on its interest in the family-owned chain.

Sources told Sky that the partnership highlights Next’s interest in Russell and Bromley’s brand, rather than its store estate or stock.

Next’s proposal is understood to be among several options being considered by Interpath, which is advising Russell and Bromley on the process.

The group is also pursuing a potential deal for fashion brand LK Bennett, which filed a notice of intention to appoint administrators last week.

Next has expanded its portfolio through a series of acquisitions in recent years, including Cath Kidston, Joules and maternitywear retailer Seraphine, typically at reduced prices following financial distress.

The retailer also owns online furniture business Made.com and high street fashion brand FatFace.

Last month, it was first reported that Next, which has a market capitalisation of £16.6bn, was  in discussions with advisers to Russell and Bromley. While other potential suitors were said to be considering an investment, their identities were unclear.

Russell and Bromley previously confirmed that it had appointed Interpath to advise on raising new financing for the business. Any transaction could involve either a full acquisition of the brand or a minority investment, although the structure of a deal remains uncertain.

Next has been approached for comment.