A once prominent British fashion retailer has fallen into administration, putting hundreds of jobs at risk.
The company has been working with restructuring advisers (Image: Getty)
A well known British fashion brand has fallen into administration, reportedly putting around 280 jobs in jeopardy, although a potential rescue by retail heavyweight Next could still be on the cards. LK Bennett has filed a notice of intention to appoint administrators only days after it became clear the retailer was racing to find a buyer to prevent the business from failing. The business has been working with restructuring advisers Alvarez & Marsal in recent weeks.
Next is among the retailers considering a bid for parts of the business, Sky News reported. Rather than taking on LK Bennett’s physical store network, Next is understood to be evaluating a cut-price offer focused on the brand name and its intellectual property, including designs and trademarks.
The company filed a notice of intention to appoint administrators (Image: Getty)
In recent years, Next has taken ownership of brands such as Cath Kidston, Joules and Seraphine, often without retaining large store estates.
The retailer is also currently examining a the purchase of footwear retailer Russell & Bromley.
Other fashion groups, including Marks & Spencer and TFG London, owner of Phase Eight, Hobbs and White Stuff, have been named by analysts as companies that could at least explore an acquisition, although there is no confirmation that any formal offers have been made.
Founded in 1990 by Linda Bennett, LK Bennett grew rapidly from a single store in Wimbledon into an international fashion name, at one point operating around 200 stores across the UK, the US, China and Russia.
The brand became particularly famous for its signature heels, earning Ms Bennett the nickname “queen of the kitten heel”, with designs worn by the Princess of Wales and former prime minister Theresa May.
Today, LK Bennett operates just nine standalone UK stores, alongside around 13 concessions.
The brand is currently owned by Byland UK, a company formed in 2019 by Rebecca Feng, previously responsible for LK Bennett’s Chinese franchise to rescue the business from its first administration. Despite that intervention, financial pressures have continued to mount.
Accounts for the year ending 27 January 2024 show LK Bennett recorded a £3.5million post-tax loss on revenues of £42.1 million, down sharply from £48.8 million the previous year.
