BREAKING: Iconic British fashion brand LK Bennett has officially entered administration, putting approximately 280 jobs at risk. This urgent development comes as retail giant Next considers a potential rescue plan for the beleaguered company.
Just days ago, LK Bennett was reported to be urgently seeking a buyer to stave off complete collapse. The decision to appoint administrators highlights the severe financial pressures the brand has faced, particularly in light of its recent financial results. Accounts for the year ending January 27, 2024, show a staggering post-tax loss of £3.5 million against revenues of £42.1 million, a significant drop from £48.8 million the previous year.
According to Sky News, Next is among several retailers exploring a bid, but they are reportedly focused on acquiring the brand name and intellectual property—such as designs and trademarks—rather than the physical store network. This method follows Next’s recent strategies, which included the acquisition of brands like Cath Kidston and Joules without maintaining large store spaces.
While Next is currently evaluating this opportunity, analysts have also identified other potential buyers, including Marks & Spencer and TFG London, the owner of brands like Phase Eight and Hobbs. However, no formal offers have been confirmed at this time.
Founded in 1990 by Linda Bennett, LK Bennett rose to prominence with its signature kitten heels, famously worn by the Princess of Wales and former Prime Minister Theresa May. The brand expanded rapidly, once boasting around 200 stores worldwide, including locations in the US, China, and Russia. Currently, LK Bennett operates only nine standalone stores in the UK along with 13 concessions.
LK Bennett’s financial woes have been exacerbated by previous ownership changes. The brand was taken over by Byland UK, a company established in 2019 by Rebecca Feng, who attempted to rescue LK Bennett from its initial administration. Despite these efforts, the brand has continued to struggle under financial pressures.
The urgency of this situation cannot be overstated, as the future of LK Bennett and its employees hangs in the balance. As negotiations unfold, the fashion industry is watching closely to see if Next or another retailer will step in to save this iconic brand.
Stay tuned for more updates on this developing story and what it means for the fashion retail landscape in the UK.
