A popular high street fashion brand, admired by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken steps towards appointing an administrator by filing a notice of intention at the High Court, triggering a temporary legal protection to halt creditor actions for ten days.
This marks the second instance in recent times that LK Bennett has signaled its intention to enter administration, with the previous notice issued on December 30. The company has been collaborating with advisers from Alvarez & Marsal in recent weeks.
Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores across the UK. However, it now operates only nine standalone stores and 13 concessions.
In 2008, Linda Bennett sold the business for around £100 million to a consortium led by private equity firm Phoenix Equity Partners. The brand was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, which is overseen by Rebecca Feng, now managing the global business from the UK.
There have been reports suggesting that Next is eyeing a potential deal for LK Bennett, particularly for its brand and intellectual property assets, excluding its 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, according to its most recent financial accounts.
Next is also reportedly showing interest in acquiring the family-owned shoe retailer Russell & Bromley. The advisory firm Retail Realisation is said to be assisting Next in pursuing the 145-year-old footwear and accessories retailer, which operates 37 stores across the UK.
Russell & Bromley, established in 1880 by George Bromley and Elizabeth Russell in Eastbourne, is currently managed by Andrew Bromley and employs over 450 individuals. Next has been expanding its brand portfolio in recent years, acquiring companies like Cath Kidston, Joules, Seraphine, and Made.com.