A popular high street fashion brand admired by Kate Middleton faces 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 preparation to enter administration and placing a temporary legal hold that prevents creditors from taking legal actions for ten days.
This marks the second instance in recent times that LK Bennett has issued such a notice, having previously done so on December 30. The company has been collaborating with advisors at Alvarez & Marsal in the preceding weeks. Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett initially boasted 200 stores across the UK. Presently, it operates nine standalone stores and 13 concessions.
In 2008, Ms. Bennett sold the business 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. Controlled by Rebecca Feng, Byland UK oversees the Chinese operations and now manages the global business from the UK.
Reports have surfaced suggesting that Next is considering a potential deal for LK Bennett, possibly involving the brand and other intellectual property assets but not the physical retail outlets. LK Bennett’s latest financial records indicate a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ended January 27, 2024.
In addition to LK Bennett, Next is reportedly eyeing the family-owned shoe retailer Russell & Bromley. The 145-year-old shoe and bag retailer, with 37 stores across the UK, has engaged advisory firm Retail Realisation to explore options. Founded in 1880 by George Bromley and Elizabeth Russell, Russell & Bromley is currently led by Andrew Bromley.
Next’s interest in acquiring Russell & Bromley aligns with its previous acquisitions of brands like Cath Kidston, Joules, Seraphine, and Made.com in recent years. The fashion retail giant is not the sole contender expressing interest in Russell & Bromley, according to sources cited by Sky News.