A popular high street fashion brand, favored by Kate Middleton, faces the possibility of going into administration. LK Bennett has submitted a notice of intention to appoint an administrator in the High Court, indicating its readiness to enter administration and initiating a temporary legal protection period against creditor actions for ten days.
This is the second instance in recent times where LK Bennett has taken this step, previously doing so on December 30. The company has been collaborating with advisers at Alvarez & Marsal during this period.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once had 200 stores across the UK but now operates only nine standalone stores and 13 concessions.
In 2008, Linda Bennett sold the business for around £100 million to a consortium headed by the 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. The business is now managed globally from the UK, focusing on maintaining the brand’s heritage through British design and existing supply chains.
Reports suggest that Next is considering a potential deal for LK Bennett, possibly involving the 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, as per its latest financial accounts.
Next is also reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley, with plans to work with advisory firm Retail Realisation on this pursuit. Russell & Bromley, established in 1880 by George Bromley and Elizabeth Russell, has 37 stores in the UK and is currently managed by Andrew Bromley.
Next’s interest in Russell & Bromley is part of its strategy to expand its brand portfolio, having acquired brands like Cath Kidston, Joules, Seraphine, and Made.com in recent years.