A popular high street fashion chain, endorsed by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken steps towards appointing an administrator by filing a notice at the High Court, indicating its intention. This move serves to provide a temporary legal shield against creditor actions for ten days.
This is not the first time LK Bennett has signaled financial difficulties, as a similar notice was issued on December 30. The company has been seeking guidance from Alvarez & Marsal in recent times. Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores nationwide. Presently, it operates nine stores and 13 concessions.
In 2008, Ms. Bennett sold the business for around £100 million to a consortium led by Phoenix Equity Partners. The latest development sees the current Chinese franchise partner, Byland UK, coming to the rescue of LK Bennett from potential administration. Controlled by Rebecca Feng, Byland UK oversees the Chinese operations and now manages the global business from the UK.
Speculations suggest that Next might be interested in acquiring LK Bennett, focusing on the brand and intellectual property assets rather than the retail outlets. LK Bennett’s recent financial reports show a post-tax loss of £3.5 million on turnover of £42.1 million as of January 27, 2024.
Additionally, Next is reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley. With 37 stores across the UK, Russell & Bromley had engaged Interpath Advisory to secure new external financing as part of a turnaround plan. Next’s interest in expanding its brand portfolio has led it to make strategic acquisitions in recent years, including Cath Kidston, Joules, Seraphine, and Made.com.