Next-Linked Retailer Stops Accepting Gift Cards Despite Acquisition Deal

1. Which Retailer Is Involved

The retailer affected is Russell & Bromley, a long-standing UK shoe brand known for premium footwear and accessories.

Earlier in 2026, Next purchased several assets of the brand after the company entered administration due to financial difficulties. These assets included:

The Russell & Bromley brand name and intellectual property
Its website and domain names
Three UK stores located in Mayfair, Chelsea, and Bluewater. (Ground News)

However, the acquisition did not include the liabilities of the previous company, which is why gift cards are now affected.

2. Gift Cards and Loyalty Points No Longer Valid

Next confirmed that customers can no longer redeem Russell & Bromley gift cards or loyalty points at the remaining stores or through the brand’s new operations. (Yahoo News)

Shoppers attempting to use them have been directed to contact the administrators handling the collapsed company instead of the new owner.

What this means

Gift cards issued before the administration are not honored by the new business structure.
Loyalty rewards tied to the previous company are also no longer redeemable.
Customers may only attempt to recover funds through the insolvency process.

3. Why the Acquisition Didn’t Protect Gift Cards

When companies enter administration and are sold to a new owner, the buyer often purchases only selected assets, not debts or obligations.

In this case:

Next acquired the brand and selected stores.
Outstanding gift cards were considered liabilities of the old company.
Those liabilities remained with the administration process, not the new owner.

This means the vouchers effectively became unsecured claims against the failed business.

4. Customer Reaction

The decision has led to frustration among customers who expected vouchers to remain valid after the acquisition.

Common complaints include:

People holding unused gift cards purchased before the collapse.
Confusion about whether the brand was still operating under Next.
Lack of clarity about how to claim refunds.

Consumer advocates note that this situation is common when retailers go into administration, as gift cards are typically treated like unsecured debts.

5. A Pattern in Retail Restructuring

Retail collapses often leave gift-card holders exposed. Similar cases have occurred when struggling chains entered administration or bankruptcy.

For example:

Debenhams stopped accepting gift cards during its final liquidation process in 2020. (Retail Gazette)
Several Arcadia brands also temporarily limited gift-card use during restructuring. (MoneySavingExpert.com)

Experts say vouchers function like interest-free loans from customers, which become difficult to honor once a company collapses.

6. What Happens Next

The future of Russell & Bromley under Next is still evolving.

Possible developments include:

Relaunching the brand as a smaller, more focused retail operation.
Integrating Russell & Bromley products into Next’s online and physical retail network.
Maintaining only a few flagship stores.

But for customers with old gift cards, the likelihood of recovering the full value may depend on the outcome of the administration process.

Summary:
A retailer tied to Next—Russell & Bromley—has stopped accepting gift cards and loyalty rewards even after Next acquired parts of the brand. Because Next purchased only assets and not the failed company’s liabilities, previously issued vouchers are no longer valid, leaving customers to seek recourse through administrators.

Below are case studies and expert/industry comments illustrating the implications of the decision by a Next-linked retailer to stop accepting gift cards despite an acquisition deal.

Next-Linked Retailer Stops Accepting Gift Cards – Case Studies and Comments

Case Study 1: Russell & Bromley Acquisition and Gift Card Fallout

The most recent example involves the footwear brand Russell & Bromley and UK fashion retailer Next plc.

Background

In early 2026, Next acquired the brand and selected assets of Russell & Bromley through a pre-pack administration deal, saving parts of the business from collapse. (Wikipedia)

However, the deal did not include liabilities from the previous company, meaning gift cards and loyalty points issued before the administration were excluded.

What happened

Russell & Bromley stores remained open under the new ownership.
Customers were informed that gift cards and loyalty points would no longer be accepted. (Yahoo News)
Voucher holders must instead file claims with administrators handling the old company.

Impact

Consumers holding vouchers effectively became unsecured creditors.
The decision created confusion among shoppers who assumed the acquisition meant vouchers would remain valid.

Retail experts note that such situations occur frequently in insolvency restructurings where assets are sold but debts are left behind.

Case Study 2: Next’s Previous Retail Rescue Deals

This incident fits a broader strategy used by Next plc, which has acquired struggling fashion brands before.

Example acquisitions

Next has previously purchased brands from administration including:

Joules
Cath Kidston

These deals typically involved buying intellectual property, brand rights, and online infrastructure, rather than taking on all liabilities of the previous business. (Wikipedia)

Business strategy

This approach allows Next to:

Relaunch brands using its online retail platform and logistics network
Reduce risk by avoiding debt and obligations
Maintain profitable product lines without supporting failing store estates.

However, critics say this model often leaves gift-card holders and suppliers unpaid.

Case Study 3: Retail Administration and Gift Card Losses

The Russell & Bromley case reflects a common issue across the retail sector.

Typical insolvency pattern

When retailers collapse and assets are sold:

Administrators stop honoring gift cards.
Buyers acquire assets only, not debts.
Customers must join the insolvency claims process.

Because gift cards are unsecured debts, customers rarely recover the full value.

Retail precedent

Similar situations occurred when several UK chains collapsed in the past decade, leaving gift-card holders unable to redeem vouchers after restructuring or liquidation.

Industry and Expert Comments

Retail Analysts

Retail analysts say acquisitions through administration are designed to save viable parts of a business quickly, but they rarely protect customer liabilities.

Industry commentary notes that gift cards essentially function as interest-free loans from customers, which can become worthless if a company fails.

Consumer Advocacy Groups

Consumer advocates argue that the system lacks sufficient protections.

Key concerns include:

Customers often do not realize gift cards carry financial risk.
Retailers may still sell gift cards shortly before insolvency events.
Claims processes for refunds can take months and rarely repay the full amount.

Advocates suggest regulators should require ring-fenced funds for gift cards or temporary protection during administration.

Retail Industry Perspective

Retail executives defend the practice as a necessary restructuring mechanism.

Without pre-pack deals:

Entire companies could collapse.
Thousands of jobs might be lost.
Valuable brands might disappear.

From this perspective, the acquisition by Next plc preserved part of the Russell & Bromley business even though some consumer liabilities were left behind.

Key Takeaways

The Russell & Bromley case illustrates several broader retail trends:

Insolvency acquisitions often exclude gift card liabilities.
Customers holding vouchers can become unsecured creditors.
Retail groups like Next plc increasingly acquire brands rather than full companies.

For consumers, the episode highlights a key lesson: gift cards carry financial risk if the retailer collapses or restructures.