A popular high street fashion retailer, admired by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken steps towards appointing an administrator by filing a notice at the High Court on January 14. This action initiates a temporary legal halt that prevents creditors from pursuing legal actions for ten days.
This is the second time recently that LK Bennett has signaled its intention to appoint an administrator, having previously done so on December 30. The company has been collaborating with advisers at Alvarez & Marsal during this period.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once had 200 stores across the UK but now operates with only nine standalone stores and 13 concessions.
LK Bennett was sold in 2008 for around £100 million to a consortium led by the private equity firm Phoenix Equity Partners. In 2019, the brand was saved from administration by its current Chinese franchise partner, Byland UK, led by Rebecca Feng, who oversees the global business from the UK.
Next is reportedly showing interest in a potential deal for LK Bennett, as indicated by Sky News. The deal might involve acquiring the brand and other intellectual property assets but not its physical 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 reports.
Additionally, Next is exploring the possibility of taking over Russell & Bromley, a family-owned shoe retailer. Next, in collaboration with advisory firm Retail Realisation, is considering acquiring the 145-year-old shoe and bag retailer, which operates 37 stores across the UK. Russell & Bromley had previously sought new external financing as part of a five-year restructuring plan.
Sky News sources suggest that Next is not the only fashion brand eyeing Russell & Bromley. Founded in 1880 by George Bromley and Elizabeth Russell, the retailer currently employs over 450 people and is led by Andrew Bromley. Next has made acquisitions of several brands in recent years, including Cath Kidston, Joules, Seraphine, and Made.com.