A popular high street fashion brand, known for its appeal to Kate Middleton, faces the possibility of going into administration. LK Bennett has taken steps towards appointing an administrator by filing a notice at the High Court, which grants a temporary legal pause preventing creditors from pursuing legal actions for a limited period.
This is the second time recently that LK Bennett has initiated such proceedings, with the most recent notice being filed on December 30. The company has been collaborating with advisers from Alvarez & Marsal in this process.
Founded in 1990 by Linda Bennett, also known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores across the UK. However, it now operates only nine standalone stores and 13 concessions.
In 2008, Ms. Bennett sold the business for an estimated £100 million to a consortium led by private equity firm Phoenix Equity Partners. Following financial challenges, LK Bennett was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, under the leadership of Rebecca Feng.
There have been reports suggesting that Next is considering a potential deal with LK Bennett, focusing on acquiring the brand and its intellectual property assets rather than its physical 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, according to its latest financial accounts.
Additionally, Next is reportedly exploring the acquisition of the family-owned shoe retailer Russell & Bromley. The 145-year-old retailer, which operates 37 stores in the UK, had engaged Interpath Advisory to secure new financing as part of a turnaround plan. Next’s interest in Russell & Bromley aligns with its strategy of acquiring renowned brands in recent years, such as Cath Kidston, Joules, Seraphine, and Made.com.