A popular high street fashion retailer, favored by Kate Middleton, is facing the possibility of going into administration. LK Bennett recently filed a notice of intention to appoint an administrator at the High Court, indicating its readiness to enter administration and invoking a temporary legal halt on creditor actions for ten days.
This is the second time in a short period that LK Bennett has taken this step, having done so previously on December 30. The company has been collaborating with advisers at Alvarez & Marsal in recent times. Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores across the UK but now operates only nine standalone stores and 13 concessions.
The business was sold by Ms. Bennett in 2008 for approximately £100 million to a group led by private equity firm Phoenix Equity Partners. In 2019, the brand was rescued from administration by its current Chinese franchise partner, Byland UK, under the leadership of Rebecca Feng, who manages the global operations from the UK.
Reports suggest that Next may be considering a potential deal for LK Bennett, focusing on acquiring the brand and its intellectual property assets, excluding its retail outlets. LK Bennett reported a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ending January 27, 2024, according to its latest financial statements.
Additionally, Next is reportedly eyeing the family-owned shoe retailer Russell & Bromley. Next is collaborating with advisory firm Retail Realisation in its pursuit of acquiring Russell & Bromley, which has 37 stores across the UK and had engaged Interpath Advisory to secure new external financing as part of a five-year turnaround strategy.
Amidst these developments, it has been disclosed that Next is not the sole fashion brand showing interest in Russell & Bromley. Established in 1880 by George Bromley and Elizabeth Russell, the company is currently overseen by Andrew Bromley, employing over 450 individuals. In recent years, Next has acquired various brands, including Cath Kidston, Joules, Seraphine, and Made.com.
