A popular high street fashion brand, endorsed by Kate Middleton, is facing the threat of going into administration. LK Bennett has lodged a notice of intention to appoint an administrator at the High Court, indicating its preparation for potential administration and initiating a temporary legal halt to creditor actions for ten days.
This is the second instance in recent times where LK Bennett has issued a notice of intention, with the previous one on December 30. The company has been collaborating with advisers at Alvarez & Marsal in the past few weeks.
Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once operated 200 stores across the UK. Presently, it operates nine stores and 13 concessions.
In 2008, Ms. Bennett sold the business for an estimated £100 million to a consortium led by the private equity firm Phoenix Equity Partners.
In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK, led by Rebecca Feng. Byland UK, under Feng’s leadership, now oversees the global business from the UK, aiming to maintain the brand’s heritage through British design and existing supply chain.
Reports suggest that Next is considering a potential deal for LK Bennett, which may involve acquiring brand and intellectual property assets, excluding retail outlets. LK Bennett reported a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ending January 27, 2024, based on its latest financial statements.
Additionally, Next is reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley, working with advisory firm Retail Realisation on pursuing the long-standing brand with 37 stores across the UK. Founded in 1880 by George Bromley and Elizabeth Russell, Russell & Bromley is currently managed by Andrew Bromley.
Not only is Next interested in Russell & Bromley, but other fashion brands have also shown interest, according to sources. Next has made several brand acquisitions in recent years, including Cath Kidston, Joules, Seraphine, and Made.com.