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 employs more than 450 people.

It was formed in 1880 when the first Russell & Bromley store opened in Eastbourne.

Seven years earlier, George Bromley and Elizabeth Russell, both of whom hailed from shoemaking families, were married, paving the way for the establishment of the business.

Russell & Bromley is now run by Andrew Bromley, the fifth generation of his family to hold the reins.

Billie Piper, the actress and singer, is the current face of the brand as it tries to appeal to younger consumers as part of a five-year turnaround plan.

If it materialised, an acquisition or investment by Next would mark the latest in a string of brand deals struck by Britain’s most successful London-listed fashion retailer.

In recent years, it has bought brands such as Cath Kidston, Joules and Seraphine, the maternitywear retailer for knockdown prices.

Next also owns Made.com, the online furniture retailer, and FatFace, the high street fashion brand.

Under Lord Wolfson, its veteran chief executive, Next has defied the wider high street gloom to become one of the UK’s best-run businesses.

Its Total Platform infrastructure solution has enabled it to plug in other retail brands in order to provide logistics, e-commerce and digital service capabilities.

Both Victoria’s Secret and Gap also have partnerships with Next using the Total Platform offering.

It was unclear whether any deal between Next and Russell & Bromley would involve acquiring the latter’s brand outright or making an investment into the business.

This weekend, Next declined to comment, while neither Russell & Bromley nor Interpath could be reached for comment.

In a statement in October, Mr Bromley said: “We are currently exploring opportunities to help take Russell & Bromley into the next phase of our ‘Re Boot’ vision.

“Since the announcement of the ‘Re Boot’ earlier this year we have made significant progress, positioning us well to build on our momentum and continue along our journey.

“We are looking forward to working with our advisory team to secure the necessary investment to accelerate our expansion plans.”

The UK economy contracted by 0.1% in October, according to official figures.

The surprise fall in gross domestic product (GDP) – a measure of economic output – comes after a similar unexpected 0.1% drop in September and 0% growth in August.

Economists polled by the Reuters news agency had predicted that October GDP would grow by 0.1%.

The figures, from the Office for National Statistics (ONS), represent more bad news for the chancellor over the state of the UK economy.

Commentators had warned that consumer spending was likely to be restrained in the run-up to November’s budget, amid concerns about the impact of Rachel Reeves’s potential measures on households and businesses.

UK GDP has also been hit hard by disruption to car production caused by a cyber attack on Jaguar Land Rover.

The ONS said that during October, the UK’s services sector fell by 0.3%, while construction was down 0.6%. However, production grew by 1.1%.

It found that GDP on a rolling three-month basis, to October, also fell by 0.1%.

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The ONS’s director of economic statistics, Liz McKeown, said: “Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month.

“Overall services showed no growth in the latest three months, continuing the recent trend of slowing in this sector. There were falls in wholesale and scientific research, offset by growth in rental and leasing and retail.”

Interest rate cut ‘nailed on’

Commentators also blamed rumours and leaks in the run-up to the budget for dampening demand.

Scott Gardner, from banking giant JP Morgan, said that despite expectations of a return to growth, the economy continued to “battle a period of inconsistent productivity”.

He added: “Speculation about potential budget announcements had a numbing effect on consumers and businesses in the lead up to the chancellor’s speech at the end of November.”

Suren Thiru, from the Institute of Chartered Accountants, said the data increased the likelihood of the Bank of England cutting interest rates next week.

He said: “With these downbeat figures likely to further fuel fears among rate-setters over the health of the UK economy, a December policy loosening looks nailed on, particularly given the likely deflationary impact of the budget.”

Figures ‘extremely concerning’

Barret Kupelian, chief economist at PwC, said that while some of the blame could be attributed to the Jaguar Land Rover cyber attack, “the bigger story is that speculation around the autumn budget kept households and businesses in wait-and-see mode”.

He added: “Given the timing of the budget, November’s GDP print is likely to look similarly subdued before any post-budget effects start to show up.”

Sir Mel Stride, the Tory shadow chancellor, described the figures as “extremely concerning”, claiming they were “a direct result of Labour’s economic mismanagement”.

A Treasury spokesperson said: “We are determined to defy the forecasts on growth and create good jobs, so everyone is better off, while also helping us invest in better public services.”

The first-ever Capture case has been delayed at the Court of Appeal as the Post Office asks for an extension to respond, Sky News has learned.

Pat Owen, a former sub postmistress who has since passed away, was convicted of stealing in 1998 based on evidence from computer software.

The system, known as Capture, was used in up to 2,500 branches in the 1990s, before the infamous Horizon system was introduced.

Hundreds of sub-postmasters were wrongfully convicted between 1999 and 2015 as part of the Horizon scandal.

Earlier this year, Sky News unearthed a 1998 report showing the Capture software was also faulty.

That report, commissioned by the solicitors acting for Mrs Owen in 1998, was served on the Post Office and may never have been seen by the jury in her case.

Ms Owen was given a suspended prison sentence and fought to clear her name subsequently – but died in 2003.

Her case was referred by the Criminal Cases Review Commission (CCRC) to the Court of Appeal in October.

The Post Office had until 5 December to respond to papers put forward by Mrs Owen’s defence team but they have now asked for an extension until 30 January.

Ms Owen’s daughter, Juliet Shardlow, described the family’s suffering at the lengthening wait.

“I need to emphasise the profound impact the ongoing delay is having on our family,” she said.

“The continuous uncertainty only compounds our heartache, stress, and anxiety.

“It has become the last thing I think about before I go to sleep and the first thing when I wake up.

“We have waited 27 years for justice, and this additional wait feels never-ending.”

Ms Owen’s case is the first time a conviction based on Capture has reached the Court of Appeal since the scandal was exposed.

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Lawyers have said that if Ms Owen is exonerated posthumously, it may “speed up” the handling of others.

CCRC chair Dame Vera Baird also told Sky News in the summer it could be a “touchstone case” for other victims.

The CCRC is also continuing to investigate around 30 other “pre-Horizon” convictions.

A Post Office spokesperson said: “We have sought an extension of time to fully consider and respond to the CCRC’s Statement of Reasons in Ms Owen’s case.

“We deeply regret the impact our request for further time will have on Ms Owen’s family.

“We have a duty to carefully consider the evidence presented in the Statement of Reasons submitted by the CCRC and do everything we can to fully assist the Court when it considers this conviction.”

Meanwhile, the first-ever redress scheme for victims of the Post Office Capture IT scandal was launched this autumn.

The Capture Redress Scheme will provide payments of up to £300,000, and more in “exceptional” cases, to former postmasters who suffered financial losses.