A popular high street fashion brand, favored by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken steps towards appointing an administrator by filing a notice at the High Court on January 14. This move serves as a temporary measure to halt legal actions by creditors for ten days.
This is the second time in recent weeks that LK Bennett has initiated such a notice, following a similar action on December 30. The company has been collaborating with Alvarez & Marsal advisors during this period.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once operated 200 stores across the UK. Currently, it has scaled down to nine standalone stores and 13 concessions.
The business was sold in 2008 for an estimated £100 million to a consortium led by private equity firm Phoenix Equity Partners. In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK, led by Rebecca Feng, who now oversees the global operations from the UK.
Reports suggest that Next has shown interest in a potential deal with LK Bennett, possibly focusing on the brand and intellectual property assets rather than the 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 accounts.
Additionally, Next is reportedly exploring the acquisition of family-owned shoe retailer Russell & Bromley, which has 37 stores in the UK. Russell & Bromley, established in 1880, is currently led by Andrew Bromley and has been seeking new external financing as part of a turnaround plan.
Apart from these potential acquisitions, Next has made notable acquisitions in recent years including Cath Kidston, Joules, Seraphine, and Made.com.