A popular high street fashion retailer, favored by Kate Middleton, faces the possibility of entering administration. LK Bennett has taken steps to appoint an administrator, filing a notice at the High Court on January 14. This move initiates a temporary legal halt on creditor actions for ten days.
This isn’t the first time LK Bennett has signaled financial trouble, as a similar notice was issued on December 30. The company has been seeking guidance from Alvarez & Marsal in recent times.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores nationwide. However, it currently operates only nine standalone stores and 13 concessions.
In 2008, Linda Bennett sold the business for around £100 million to a consortium led by Phoenix Equity Partners. In 2019, the brand was rescued from administration by its Chinese franchise partner, Byland UK, under the leadership of Rebecca Feng, who now oversees the global operations from the UK.
Recent reports suggest that Next is eyeing a potential deal with LK Bennett, possibly focusing on acquiring the brand and its intellectual property, excluding its physical stores. 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 to its interest in LK Bennett, Next is also reportedly exploring the acquisition of family-owned shoe retailer Russell & Bromley. With 37 stores across the UK, Russell & Bromley had enlisted Interpath Advisory to secure new financing as part of a business turnaround plan.
Next’s expansion plans include potential acquisitions beyond Russell & Bromley, as the company has previously acquired brands like Cath Kidston, Joules, Seraphine, and Made.com.