A major UK retailer has closed all of its remaining stores after collapsing into administration with debts of more than £59 million, bringing an end to 146 years of trading on the British high street.

Luxury footwear and handbag retailer Russell & Bromley, founded in 1880 by George Bromley and Elizabeth Russell, has now shut all branches that were not included in a rescue deal with fashion giant Next. The closures follow a phased wind-down of the business, leaving just three stores operating under the new ownership.

Administrators from Interpath Advisory confirmed that the remaining 33 stores have now closed their doors permanently, resulting in around 400 redundancies. The majority of the retailer’s workforce employed at the non-transferring stores has now lost their jobs.

A spokesperson for the joint administrators said: “Following the announcement regarding the sale of the Russell & Bromley brand and certain assets to Next plc, the joint administrators can confirm that a phased closure programme for the remaining Russell & Bromley stores is now complete.

“All stores that did not transfer to Next as part of that transaction closed. Regrettably, these closures mean that the majority of employees working in the non-transferring stores have been made redundant.

“The administrators and their teams are engaging closely with all affected staff and will be providing support throughout the process, including assisting individuals in submitting claims to the Redundancy Payments Service.”

The family-owned retailer entered administration earlier this year after years of mounting financial pressure.

Next acquired the Russell & Bromley brand, selected assets and three stores located in Chelsea, Mayfair and Bluewater shopping centre in Kent through a pre-pack administration deal. However, the remaining 33 stores and nine concessions were not included in the transaction and have now permanently closed.

Court documents show the company owed approximately £59.3 million when administrators Will Wright and Chris Pole of Interpath Advisory were appointed.

The business is understood to have accumulated losses of around £20 million over the past two years as falling sales, rising operating costs and weak consumer demand took their toll.

Administrators said the company had historically relied on existing cash reserves to fund operations, but in recent years was forced to sell a number of freehold properties to support its loss-making business.

They said: “The group was relatively highly loss-making, with these losses due to a combination of falling sales, increasing operational costs, and a relatively high fixed cost base.

“Further to this, the wider UK market has been difficult for retail businesses with challenging trading conditions characterised by high inflation and suppressed consumer demand.”

The retailer’s statement of affairs, released three months after the collapse, estimated a total deficiency of £35.7 million.

Administrators also revealed that around £2.1 million had been drawn under the company’s trade finance facility before NatWest exercised its right of set-off immediately after the administration began, using cash held by the business to clear the outstanding balance.

Russell & Bromley also owed HM Revenue & Customs around £3.2 million. Administrators said HMRC may receive distributions from other group insolvencies related to the same VAT claim, while unsecured creditors may eventually receive a dividend once assets have been realised and costs paid, although the final amount has yet to be determined.

Known for its premium leather footwear and handbags, Russell & Bromley became a favourite among high-profile figures, including the Princess of Wales, Katie Holmes and Billie Piper. Despite its long-standing reputation for quality and craftsmanship, the retailer struggled to recover following the pandemic and had remained unprofitable since 2019.

New regulations currently under consultation could result in business owners facing penalties even when they settle their PAYE and VAT promptly – purely because they have used the incorrect payment method. An accountant has challenged the reasoning behind the proposed changes, branding it an “oddity”, while one business owner condemned the Government for treating companies like “errant school children”.

The Government is presently inviting opinions on proposals to mandate businesses to pay their PAYE and VAT return liabilities via Direct Debit, aiming to cut late payment, curb the accumulation of debt and streamline the payment procedure to minimise mistakes. It stated that responses from the business sector and other relevant parties would help shape the extent of future modifications and establish whether protections were necessary, alongside exemptions from Direct Debit payments for specific taxpayers.

The consultation is open until August 16, 2026. The Government acknowledged that certain businesses might encounter difficulties in paying by Direct Debit, including handling cash flow and adjusting to new procedures, and emphasised that feedback from the consultation was vital and would directly shape its strategy.

Should paying VAT and PAYE by Direct Debit become compulsory, any payment made through an alternative method — where no exemption applies — could attract a penalty, even if the full amount is settled promptly and on time. Harvey Dhillon, founder and chief executive of small business accountants Zmartly, said “moving most VAT and PAYE payments to Direct Debit is, for once, a sensible fix”.

He continued: “The late-payment penalties I see are rarely from firms that cannot pay, but from a wrong reference or the right money hitting the wrong period, and Direct Debit quietly ends that. That part is genuinely good.”

Nevertheless, he raised serious concerns over the prospect of fines for non-compliance: “When did paying your tax in full and on time become something HMRC could fine you for? That is the oddity in this consultation.

“A charge that can land even when the tax is paid in full and on time, purely because it went by bank transfer, is a fine for using the wrong envelope. The one caught is the careful business that always pays, not the debtor this is meant to chase. So before August 16, set up the Direct Debit, but tell the consultation that method is not the same as payment.”

Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, was unimpressed and said the switch to Direct Debit to pay VAT and PAYE could cause cash flow issues. He added: “HMRC frames it as efficiency, and cutting the tax gap caused by manual errors. But businesses use Faster Payments and CHAPS deliberately for cash flow control. A mandatory Direct Debit hands HMRC a preferred creditor’s schedule, not yours.

“Worse, HMRC is consulting on penalising businesses that pay in full and on time, simply for using the ‘wrong’ channel. That flips compliance on its head.

“You’re punished not for failing to pay, but for failing to use their preferred technology. It treats SMEs like errant children.”

Rob Burgess, founder of London-based Head for Points, warned that the proposed reforms would prove “very handy for HMRC and very inconvenient for those of us who don’t want the trouble of ensuring the right sum is in the right bank account on a specific day”.

He went on to say: “Another tranche of people it will affect are those who choose to earn rewards points and other benefits on card payments, plus those using certain credit cards also enjoy a period of interest-free credit. If you are currently earning points from paying VAT or PAYE via a card, you should complete the consultation questionnaire with good reasons why Direct Debit is not suitable for you and similar businesses.”

Morrisons is offering shoppers a major loyalty points boost as part of a new push into financial services, launching pet and travel insurance products that come with exclusive customer rewards. The supermarket has partnered with insurance specialist Hood Group to roll out the products, joining rivals including Tesco, Asda and Sainsbury’s in using their brands and loyalty schemes to expand beyond traditional grocery retail.

Shoppers signing up for the new insurance products can earn rewards through Morrisons‘ popular More Card loyalty programme. Customers taking out a pet insurance policy will receive 20,000 More Points, while those purchasing travel insurance can benefit from a 10% discount on their cover.

Every 5,000 More Points can be exchanged for a Morrisons Fiver to spend online or in stores. Morrisons said in January that More Card active users were up 11% to a record 8 million.

Morrisons Pet Insurance is underwritten by Burns & Wilcox Global Solutions Limited on behalf of Accredited Insurance (UK) Limited. It offers three levels of lifetime cover with annual veterinary fee limits of £2,500, £5,000 and £10,000.

Customers will also have access to a UK-based 24/7 Pet Health Assist Line staffed by vets and nurses.

Meanwhile, Morrisons Travel Insurance, underwritten by Axa, is available in three levels of cover and includes gadget protection as standard for customers who buy directly.

The policies are available online through Morrisons, with the digital platform operated by insurance specialist Hood Group.

Jamie Winter, Morrisons’ director of procurement, said: “With the launch of Morrisons Insurance, we’re giving customers access to trusted pet and travel cover while rewarding them through our popular More Card with points and exclusive discounts.

“These new services are designed to make life a little easier by offering simple, good-value options in areas that really matter to our customers.”

Bruce Reid, commercial director at Hood Group, said: “Absolutely delighted to see this latest affinity partnership come to life with Morrisons.

“It’s been a genuine pleasure collaborating on the launch of Pet and Travel Insurance for their customers – an initiative that truly reflects their ambition and forward thinking.”

He added: “Morrisons have embraced the opportunity they can unlock within their estate, recognising the meaningful value they can bring to their shoppers by offering high-quality Pet and Travel insurance products.”

Reid said the launch is “a brilliant collective effort” between the teams at Morrisons, Hood Group and insurance partners.

The expansion comes as supermarkets continue searching for new revenue streams amid fierce competition in the grocery sector.

Retail giants like Tesco, Asda and Sainsbury’s already offer a variety of insurance products.

By teaming up with major insurance firms, supermarkets are able to sell insurance products to their customers while boosting loyalty scheme engagement through rewards, including extra points and money-saving perks.

For example, with Tesco Pet Insurance, you can choose from three levels of cover: Lifetime, Maximum Benefit or Time Limited and you get a discount with your Clubcard.

Asda has also recently launched business, gadget, home and motor cover through a series of partnerships. expanded its insurance offering in recent years, introducing products including home, motor, gadget and business cover through partnerships with specialist providers.

Sainsbury’s also remains active in the market, with Allianz managing home and motor policies previously provided via Sainsbury’s Bank.

A bank account offering customers £200 has been hailed as ‘excellent’ by a financial expert. Moneyfactscompare has unveiled its Pick of the Week, highlighting what it considers to be the finest financial products currently available.

This week’s selection includes savings accounts, mortgages and current accounts, each assessed and rated with detailed reasoning.

Moneyfactscompare Pick of the Week

Savings

Chip – Chip Easy Access Account

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “The latest update from Chip sees it increase the rate on its Chip Easy Access Account. The boost to 5.01% AER sees it take the market-leading position when compared to its peers.

“However, while this is an attractive headline rate, savers should take note of the six month 1.51% AER bonus, so it’s crucial they review their deal once this expires. The account has no minimum deposit and savers can make further additions at any time.

“While access is permitted, savers are limited to the amount of penalty-free withdrawals they can make. If they make four or more the rate will drop significantly to just 2.91% AER so savers may need to plan carefully. Overall, this account receives an Excellent Moneyfacts product rating.”

Mortgages

TSB – Five-year fixed rate mortgage, 85% loan-to-value

Caitlyn said: “This week TSB has reduced a large selection of its fixed rates by up to 0.25%. One deal for remortgage customers to see a slightly smaller cut is the five-year deal at 85% loan-to-value which is now priced at a competitive 4.89% until August 31, 2031.

“Borrowers may note that while this deal includes a £995 fee, this is offset by its generous incentive package, which includes a free valuation and either £300 cashback or free legal fees. Adding to its appeal, borrowers are also offered some flexibility with their monthly payments as overpayments and payment holidays are permitted, subject to conditions. On assessment, this deal earns an Excellent Moneyfacts product rating.”

Buy-to-let – HSBC – Two-year fixed rate mortgage, 60% loan-to-value

Caitlyn said: “HSBC has reduced a selection of its fixed rate deals for landlords by up to 0.12%. The two-year option at 60% loan-to-value for second-time buyers has seen a slightly smaller cut and is now priced at an attractive 4.86%. The drop strengthens its position as a Moneyfacts Best Buy and, in addition to being fee-free, landlords can also enjoy a free valuation incentive, which may make this deal a great option for those looking to save on upfront costs. Overall, the deal earns an Outstanding Moneyfacts Product Rating.”

Credit cards

Virgin Money – 36 Month Balance Transfer Credit Card Mastercard

Caitlyn said: “The latest update from Virgin Money sees it reduce the introductory balance transfer fee to 3.10% on its 36 Month Balance Transfer card. The deal is already one of the longest balance transfer terms available and the cut may make this an even more enticing option for borrowers looking to transfer existing balances interest-free.

“However, it’s important borrowers note this is an introductory rate for the first two months, after which the fee rises to 5%. Further adding to its appeal, borrowers needing to make a big purchase may be pleased to note that this card also offers 0% on purchases for the first three months, but the standard rate rises to 24.9% thereafter so it’s important that they can afford to make the repayments. On assessment, this card sits towards the top of the Moneyfacts Best Buy tables and earns an Outstanding product rating.”

Banking

Barclays Bank – Bank Account

Caitlyn said: “This week Barclays Bank has launched a new £200 switching offer on its Bank Account. Consumers must switch using the Current Account Switch Service (CASS) and meet other criteria to be eligible.

“While the Bank Account doesn’t offer any credit interest or reward, adding to its appeal the card offers a £15 interest-free buffer on arranged overdrafts. Separate to the offer, this may be a good option for consumers wanting to maximise the overall value of their bank account because they can earn cashback on operating with Barclays Cashback partners through Blue Rewards, but this comes at an extra cost. Overall, the account earns an Excellent Moneyfacts product rating.”

Additionally, the account includes an Apple TV+ subscription valued at £9.99 per month.