A popular high street fashion brand, admired by Kate Middleton, faces the possibility of going into administration. LK Bennett has submitted a notice of intention to appoint an administrator at the High Court, initiating a legal freeze to prevent creditors from taking action for ten days.
This marks the second time in a short period that LK Bennett has taken this step, following a similar notice on December 30. The company has been collaborating with advisers at Alvarez & Marsal in recent times.
Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores across the UK. Presently, it operates nine stores and 13 concessions. In 2008, Ms. Bennett sold the business for around £100 million to a consortium led by private equity firm Phoenix Equity Partners.
LK Bennett was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, overseen by Rebecca Feng. Reports suggest that Next is considering a potential deal for LK Bennett, possibly involving brand and intellectual property assets but excluding retail outlets.
According to its latest financial statements, LK Bennett incurred a post-tax loss of £3.5 million on a turnover of £42.1 million ending on January 27, 2024. Additionally, Next is reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley, with 37 stores in the UK. Russell & Bromley, established in 1880, is currently managed by Andrew Bromley and has attracted interest from various fashion brands besides Next.
Next’s acquisition history includes brands like Cath Kidston, Joules, Seraphine, and Made.com in recent years.