A popular high street fashion brand favored by Kate Middleton is facing the possibility of going into administration. LK Bennett has lodged a notice of intention to appoint an administrator at the High Court on January 14, indicating its readiness to enter administration and imposing a temporary legal freeze preventing creditors from taking legal actions for ten days.
This marks the second instance in a short period that LK Bennett has issued such a notice, having previously done so on December 30. Advisers from Alvarez & Marsal have been assisting LK Bennett in recent weeks.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores across the UK. Currently, it operates only nine stores and 13 concessions.
Linda Bennett sold the business for an estimated £100 million in 2008 to a consortium led by the private equity firm Phoenix Equity Partners.
LK Bennett was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, led by Rebecca Feng. Feng oversees the global business from the UK, emphasizing the brand’s British design legacy and supply chain.
Reports from Sky News suggest that Next is considering a potential deal for LK Bennett, which may involve acquiring the 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, based on its latest accounts.
Additionally, Next is reportedly eyeing a takeover of the family-owned shoe retailer Russell & Bromley, with advisory firm Retail Realisation assisting in the pursuit. Russell & Bromley, founded in 1880, is currently managed by Andrew Bromley and operates 37 stores with over 450 employees. Next’s recent acquisitions include brands like Cath Kidston, Joules, Seraphine, and Made.com.