A popular high street fashion brand, favored by Kate Middleton, is facing the possibility of going into administration. LK Bennett has filed a notice of intention to appoint an administrator at the High Court, indicating its readiness to enter administration and putting a temporary legal hold on creditor actions for ten days.
This is the second time in recent weeks that LK Bennett has taken this step, having previously done so on December 30. The company has been working closely with advisers at Alvarez & Marsal during this period.
Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once had 200 stores across the UK. However, it currently operates only nine standalone stores and 13 concessions.
In 2008, Ms. Bennett sold the business for around £100 million to a consortium led by the private equity firm Phoenix Equity Partners. In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng.
Reports suggest that Next is showing interest in a potential deal with LK Bennett, focusing on acquiring the brand and intellectual property assets rather than its retail outlets. LK Bennett recorded 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 a takeover of the family-owned shoe retailer Russell & Bromley, with Sky News indicating that Next is collaborating with advisory firm Retail Realisation on this pursuit. Russell & Bromley, founded in 1880, operates 37 stores across the UK and had engaged Interpath Advisory to secure new external financing as part of a turnaround plan.
While Next is not the only fashion brand interested in Russell & Bromley, sources suggest, it has a history of acquiring brands like Cath Kidston, Joules, Seraphine, and Made.com in recent years.