A popular high street fashion brand patronized by Kate Middleton faces the threat of entering administration. LK Bennett has lodged a notice of intention to appoint an administrator at the High Court, indicating its preparation to undergo administration and invoking a temporary legal halt on creditors’ actions for ten days.
This move marks the second instance in recent times that LK Bennett has issued such a notice, with the previous one on December 30. The fashion chain has been collaborating with advisors at Alvarez & Marsal 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 but currently operates with nine standalone stores and 13 concessions.
In 2008, Ms. Bennett sold the business for an estimated £100 million to a consortium led by the private equity firm Phoenix Equity Partners. In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK, under the leadership of Rebecca Feng, who oversees global operations from the UK.
Recent reports suggest that Next is considering a potential deal for LK Bennett, potentially involving the brand and intellectual property assets but excluding its retail outlets. LK Bennett recorded 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 financial statements.
Next is also reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley. The advisory firm Retail Realisation is assisting Next in pursuing the 145-year-old shoe and bag retailer, which operates 37 stores in the UK. Russell & Bromley, founded in 1880 by George Bromley and Elizabeth Russell, had enlisted Interpath Advisory to secure new external financing as part of a five-year turnaround plan.
Apart from Russell & Bromley, other fashion brands have shown interest in the acquisition. Russell & Bromley, currently managed by Andrew Bromley, employs over 450 individuals. In recent years, Next has expanded its brand portfolio with acquisitions such as Cath Kidston, Joules, Seraphine, and Made.com.