URGENT UPDATE: British fashion retailer LK Bennett has officially entered administration, putting approximately 280 jobs at risk. This announcement, made just hours ago, comes as the company seeks urgent solutions to avert complete collapse. Retail giant Next is reportedly considering a potential bid to rescue the brand, according to Sky News.
LK Bennett filed a notice of intention to appoint administrators earlier today, just days after revealing it was actively searching for a buyer. The firm has been working closely with restructuring advisers from Alvarez & Marsal in a last-ditch effort to save the business.
Next’s interest appears to focus on acquiring LK Bennett’s brand name and intellectual property rather than its physical stores. This strategy aligns with Next’s recent acquisitions, including brands like Cath Kidston and Joules, which they have managed successfully without maintaining extensive retail networks. In addition to LK Bennett, Next is also exploring the purchase of footwear retailer Russell & Bromley.
The history of LK Bennett is notable; founded in 1990 by Linda Bennett, the brand grew rapidly from a single shop in Wimbledon to an international presence, boasting nearly 200 stores across the UK, US, China, and Russia at its peak. Renowned for its distinctive heels, the brand earned Ms. Bennett the title “queen of the kitten heel,” with notable fans including the Princess of Wales and former Prime Minister Theresa May.
Currently, LK Bennett operates only nine independent shops in the UK and 13 concessions. The brand is owned by Byland UK, a company founded in 2019 by Rebecca Feng, who initially took control to save LK Bennett from its first administration. Despite these efforts, the company has continued to struggle financially.
Recent records indicate that for the fiscal year ending January 27, 2024, LK Bennett reported a post-tax loss of £3.5 million on revenues of £42.1 million, down significantly from £48.8 million the previous year. Analysts suggest that other fashion groups, including Marks & Spencer and TFG London, could also be potential contenders for acquisition, though no formal offers have been confirmed.
As developments unfold, the fate of LK Bennett and its workforce remains uncertain. The urgency of this situation calls for immediate attention from stakeholders and consumers alike. Stay tuned for more updates as this story develops.
