Russell & Bromley owes unsecured creditors £37.5m
Russell & Bromley owes £37.5 million to unsecured creditors following its collapse into administration in January 2026, according to a progress report by its joint administrators at Interpath.
"Based on current estimates, we anticipate that unsecured creditors may receive a dividend," Interpath noted in its report, adding that it had not yet determined how much would be paid out and that this depended on remaining assets being realised.
The report, which covers the administration period from 21 January to 20 July, also lists an estimated £2.8 million in unsecured employee claims as a separate line item.
It outlines that the company's only secured creditor, the NatWest bank, has nothing outstanding, as the bank offset the £2.1 million it was owed against money held in a Russell & Bromley bank account after the administration appointment.
The claims for ordinary preferential creditors – employees – are estimated at £134,000 and expected to be paid out in full, as is secondary preferential creditor HMRC, which is to receive full payment against a claim of approximately £2.8 million. The report outlines that the secondary creditor relates to "pre-administration Group VAT liabilities and outstanding PAYE & national insurance contributions".
Both creditors are set out to be paid out "as soon as reasonably practicable".
Store trading generated £13.1 million
The report further outlined the sales generated by the 38 retail and concession locations that were not included in the initial sale to NEXT, and which continued trading under Retail Realisation LLP to sell remaining stock as part of the administration process.
According to Interpath's report, they generated £13.1 million in post-appointment sales before the final stores closed on 24 April, with £4.9 million recorded as a trading surplus.
Interpath noted that it expects the final trading profit to be approximately £4.1 million once outstanding receipts and costs have been settled.
Retail Realisation received £3.9 million in fees during the period relating to its management of the stores during the administration period.
In addition to stock sold in store, stock realisations produced approximately £2 million according to Interpath, including £1.27 million through the acquisition of stock by NEXT.
Meanwhile, leasehold interests generated around £500,000 while recovery of business-rate payments generated £300,000.
Costs and recoveries remain outstanding
Interpath had incurred £4.34 million in time costs by 20 July, covering 5,148 hours at an average hourly rate of £843. The administrators had not drawn remuneration during the reporting period and are seeking creditor approval for their fee basis.
The revised estimate for administration expenses totals £16.24 million. Remaining recovery work includes marketing three long-leasehold properties, pursuing business-rates repayments and recovering funds retained by payment providers.
Russell & Bromley's administration followed an EBITDA loss of £12.1 million in the 11 months to November 2025. Since the collapse, 332 roles have been cut from the head office and store network.
NEXT has since reopened the Richmond store and plans to return Russell & Bromley to Westgate Oxford on 3 September.
