A popular high street fashion retailer, favored by Kate Middleton, is facing the possibility of going into administration. LK Bennett submitted a notice of intention to appoint an administrator at the High Court on January 14, indicating its intent to enter administration and triggering a temporary legal protection preventing creditors from taking legal action for ten days.
This is the second time in a short period that LK Bennett has taken this step, as they previously did so on December 30. The company has been collaborating with advisers at Alvarez & Marsal in recent times.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once operated 200 stores across the UK. However, it currently only has nine standalone 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.
LK Bennett was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng. Feng oversees the Chinese operations and now leads the global business from the UK. She emphasized the continuation of the business in the UK, aiming to preserve the brand’s heritage through British design and the existing supply chain.
Reports suggest that Next is considering a potential deal for LK Bennett, possibly involving brand and intellectual property assets but not the retail outlets. LK Bennett recorded 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 interested in acquiring the family-owned shoe retailer Russell & Bromley, working with advisory firm Retail Realisation on the pursuit. Russell & Bromley, founded in 1880, has 37 stores across the UK and had engaged Interpath Advisory to secure new external financing as part of a five-year turnaround plan.
It is mentioned that other fashion brands, besides Next, have shown interest in Russell & Bromley, a company currently led by Andrew Bromley and employing over 450 individuals. In recent years, Next has acquired various brands, including Cath Kidston, Joules, Seraphine, and Made.com.