UPDATE: Renowned British fashion retailer LK Bennett has officially entered administration, putting approximately 280 jobs at risk. The urgent announcement comes as the company seeks a potential rescue from retail giant Next, which is considering a bid to acquire parts of the struggling brand.
Just days after filing a notice of intention to appoint administrators, LK Bennett confirmed its dire financial situation. The company has been working closely with restructuring advisers Alvarez & Marsal to find a buyer and avert total collapse. Officials state that time is of the essence, with the future of the brand hanging in the balance.
Reports indicate that Next is exploring a discounted offer focused on acquiring LK Bennett’s brand name and intellectual property, rather than its physical store network. This strategy aligns with Next’s recent history of acquiring brands like Cath Kidston and Joules without taking on their extensive store estates.
While Next is a frontrunner, analysts also suggest that other fashion groups, including Marks & Spencer and TFG London, which owns brands like Phase Eight and Hobbs, may consider making offers. However, no formal bids have been confirmed at this time.
Founded in 1990 by Linda Bennett, LK Bennett rapidly grew from a single store in Wimbledon into an international fashion brand. At its peak, it boasted around 200 stores across the UK, the US, China, and Russia. The brand is particularly known for its iconic heels, which have been worn by notable figures like the Princess of Wales and former Prime Minister Theresa May.
Currently, LK Bennett operates just nine independent UK shops and approximately 13 concessions, a stark decline from its former glory. The label is owned by Byland UK, established in 2019 by Rebecca Feng, who previously managed LK Bennett’s Chinese franchise. This acquisition was intended to rescue the brand from its first administration, but financial troubles have persisted.
Recent records for the year ending 27 January 2024 reveal LK Bennett incurred a staggering £3.5 million post-tax loss on a turnover of £42.1 million, a significant drop from £48.8 million in the previous year. The retailer’s current plight underscores the challenging landscape facing many businesses in the fashion sector.
As LK Bennett navigates this critical juncture, the coming days will be pivotal. Retail insiders and employees alike are bracing for developments as potential bids are evaluated. The situation remains fluid, and any updates could impact hundreds of lives and the future of a storied British brand.
Stay tuned for real-time updates on this developing story.
