A popular high street fashion chain, favored by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken steps by filing a notice of intention to appoint an administrator at the High Court on January 14. This action serves as a signal that the company is gearing up to enter administration and offers a temporary legal protection that prevents creditors from pursuing legal actions for ten days.
This is the second time in recent weeks that LK Bennett has issued a notice of intention, with a previous instance occurring 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. However, it currently operates only nine stores and 13 concessions.
In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK. Controlled by Rebecca Feng, Byland UK oversees the Chinese operations and now manages the global business from the UK. Next has shown interest in a potential deal with LK Bennett, as reported by Sky News, which could involve acquiring the brand and other intellectual property assets, excluding its retail outlets.
In its latest financial reports, 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. Next is also reportedly eyeing a takeover of the family-owned shoe retailer Russell & Bromley, which has 37 stores across the UK. Founded in 1880 by George Bromley and Elizabeth Russell, Russell & Bromley currently employs over 450 individuals and is headed by Andrew Bromley.