A popular high street fashion brand, endorsed by Kate Middleton, is facing the possibility of entering administration. LK Bennett has submitted a notice of intention to appoint an administrator at the High Court, signaling its readiness to undergo the process and granting a temporary legal protection against creditor actions for ten days.
This move marks the second time in a short period that LK Bennett has taken such a step, having previously done so on December 30. The company has been collaborating with advisers at Alvarez & Marsal in recent times. Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 outlets across the UK but now operates only nine standalone stores and 13 concessions.
In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng. Under Feng’s leadership, the business aims to preserve its British design heritage and supply chain. Reports have surfaced suggesting that Next is eyeing a potential deal for 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 for the period ending January 27, 2024, based on its latest financial statements. Next is also reportedly showing interest in acquiring the family-owned shoe retailer Russell & Bromley, with Sky News revealing that Next is working with advisory firm Retail Realisation on this pursuit. Russell & Bromley, founded in 1880, has 37 stores across the UK and is currently led by Andrew Bromley.
Next’s expansion strategy has seen it acquire various brands in recent years, including Cath Kidston, Joules, Seraphine, and Made.com.