Russell & Bromley creditors owed £37.5m

A progress report for the administration period between 21 January and 20 July 2026, prepared by joint administrators at Interpath and seen by Drapers, shows that Russell & Bromley‘s unsecured creditors are owed a total of £37.5m. “Based on current estimates, we anticipate that unsecured creditors may receive a dividend,” the report reads. “We have yet to determine the quantum of this, but we will do so when we have completed the realisation of assets and the payment of associated assets.” The report, prepared by Interpath’s Will Wright and Chris Pole, also shows that Interpath has “not drawn any remuneration” to date following the company’s appointment as administrators on 21 January. The administrators added that they have incurred expenses of £32,227 during the administration period, none of which have yet been paid. “We estimate that ordinary and secondary preferential creditors will be paid in full,” the report continues. The claims for ordinary creditors (employees) amounts to £134,000, with those included due to receive a dividend of 100p in the pound “as soon as reasonably practicable”. Secondary preferential creditor (HMRC) claims sit at £2.8m – this includes pre-administration VAT liabilities and outstanding pay as you earn (PAYE) and national insurance (NI) contributions. HMRC is also due to receive a dividend of 100p in the pound “as soon as reasonably practicable”. Advertisement In terms of Russell & Bromley’s sole secure creditor – NatWest bank – no amount owed remains outstanding, according to the report. Russell & Bromley generated total sales of £13.1m via its retail and concession estate during the administration trading period, resulting in anticipated trading profit of £4.1m. The footwear specialist’s stores ceased trading on 24 April after selling a “substantial majority of stock”, with “all remaining employees” made redundant after this date, the report also confirms. It says £800,000 was paid “in respect of wages and salaries, payroll taxes, pension contributions and other employee-related expenses” during the period. Drapers revealed in January that suppliers to Russell & Bromley had been left in the dark as to what to do with hundreds of thousands of Euros worth of stock following its collapse, as well as that Interpath had made lowball offers to a number of suppliers for the remaining stock, which are understood to be, in some cases, equivalent to a fifth of the production cost. Advertisement The progress report notes that Interpath engaged with suppliers to identify inventory that was “in transit or had been manufactured but not yet dispatched”. “Following negotiations with those suppliers, we were able to facilitate supplementary stock sales to the purchaser, generating additional realisations for the estate,” the report concludes. Interpath did not provide a comment when approached by Drapers. This comes after Next acquired Russell & Bromley in a £2.5m cash pre-pack administration deal on 21 January, resulting in the closure of its store estate, aside from three remaining stores in Chelsea, Mayfair and Bluewater shopping centre. Have your say or a new account to join the discussion.