A popular high street fashion brand, favored by Kate Middleton, is facing potential administration. LK Bennett has lodged a notice of intent to appoint an administrator in the High Court, signaling its readiness to enter administration and obtaining a temporary legal shield against creditor actions for ten days.
This marks the second instance in recent times that LK Bennett has taken this step, having previously done so on December 30. The company has been collaborating with advisers at Alvarez & Marsal in recent weeks.
Founded in 1990 by Linda Bennett, 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 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, led by Rebecca Feng. Feng oversees the global business operations from the UK and emphasized the brand’s British heritage in future plans.
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 reported a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ending January 27, 2024.
In addition, Next is reportedly interested in acquiring family-owned shoe retailer Russell & Bromley. The 145-year-old retailer with 37 UK stores had previously sought external financing as part of a turnaround plan.
Apart from Russell & Bromley, other fashion brands have also shown interest in the retailer. Russell & Bromley, founded in 1880, is currently managed by Andrew Bromley and employs over 450 individuals. Next has expanded its brand portfolio in recent years with acquisitions like Cath Kidston, Joules, Seraphine, and Made.com.