Next, the high street fashion giant, is plotting a swoop on Russell & Bromley, the 145 year-old shoe retailer.

Sky News has learnt that Next, which has a market capitalisation of £16.6bn, is among the parties in talks with Russell & Bromley's advisers about a deal.

City sources said this weekend that a number of other suitors were also in the frame to make an investment in the chain, although their identities were unclear.

The talks come amid the peak Christmas trading period, with retail bosses hopeful that consumer confidence holds up over the coming weeks despite the stuttering economy.

Russell & Bromley confirmed several weeks ago that it had drafted in Interpath, the advisory firm, to explore options for raising new financing for the business.

The chain trades from 37 stores and

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