A popular high street fashion brand, admired by Kate Middleton, is facing the risk of going into administration. LK Bennett recently filed a notice of intention to appoint an administrator, signaling its preparation for potential administration and obtaining a temporary legal freeze to prevent creditors from taking legal action for ten days.
This is the second time in a short span that LK Bennett has issued such a notice, with the previous one on December 30. The company has been collaborating with advisors at Alvarez & Marsal during this period.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett originally boasted 200 stores across the UK. However, it currently operates only nine standalone stores and 13 concessions.
In 2008, Linda Bennett sold the business for an estimated £100 million to a consortium led by private equity firm Phoenix Equity Partners. In 2019, the brand was rescued from administration by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng, who now oversees the global business operations from the UK.
Reports suggest that Next has shown interest in a potential deal with LK Bennett, potentially involving the acquisition of 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 in its latest financial accounts.
Additionally, Next is reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley, working with advisory firm Retail Realisation on this pursuit. Russell & Bromley, founded in 1880, is currently managed by Andrew Bromley and has been seeking new financing as part of a turnaround plan. Next’s interest in Russell & Bromley aligns with its strategy of acquiring brands like Cath Kidston, Joules, Seraphine, and Made.com in recent years.