A popular high street fashion brand, favored by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken steps towards appointing an administrator, as indicated by a notice filed at the High Court on January 14. This move grants a temporary legal hold that prevents creditors from initiating legal actions for ten days.
This is the second instance in a short period where LK Bennett has signaled its intention to appoint an administrator, with a previous notice issued on December 30. The company has been collaborating with advisors at Alvarez & Marsal in recent times.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores across the UK. Currently, it operates nine 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.
LK Bennett was rescued from administration in 2019 by its current Chinese franchise partner, Byland UK, under the leadership of Rebecca Feng. There is speculation that Next has shown interest in a potential deal with LK Bennett, focusing on acquiring the brand and intellectual property assets, excluding its retail outlets.
The latest financial accounts show that LK Bennett incurred a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ending January 27, 2024. Additionally, Next is reportedly eyeing the acquisition of the family-owned shoe retailer, Russell & Bromley, with assistance from advisory firm Retail Realisation. This move follows Russell & Bromley’s efforts to secure new external financing as part of a five-year recovery plan.
Amidst these developments, Next is not the sole fashion brand expressing potential interest in Russell & Bromley, a company founded in 1880 by George Bromley and Elizabeth Russell. With over 450 employees, the business is currently overseen by Andrew Bromley. In recent years, Next has expanded its brand portfolio by acquiring companies like Cath Kidston, Joules, Seraphine, and Made.com.