A popular high street fashion brand favored by Kate Middleton is facing the possibility of going into administration. LK Bennett has submitted a notice of intent to appoint an administrator at the High Court, indicating its readiness to enter administration and triggering a temporary legal hold preventing creditors from taking legal actions for ten days.
This marks the second time in recent weeks that LK Bennett has taken this step, 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 operated 200 stores across the UK. However, it currently operates only nine standalone stores and 13 concessions.
In 2019, LK Bennett was rescued from administration by its present Chinese franchise partner, Byland UK, led by Rebecca Feng. Feng oversees the global business from the UK and emphasized plans to maintain the brand’s British design heritage and supply chain.
Reports suggest that Next is considering a potential deal for LK Bennett, focusing on acquiring brand and intellectual property assets rather than its retail locations. 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, based on its latest financial accounts.
Additionally, Next is reportedly eyeing a takeover of family-owned shoe retailer Russell & Bromley. Next is working with advisory firm Retail Realisation to pursue the 145-year-old retailer, which operates 37 stores across the UK. Russell & Bromley had previously engaged Interpath Advisory to secure new external financing as part of a five-year recovery strategy.
Sky News sources suggest that other fashion brands, apart from Next, have shown interest in Russell & Bromley. The retailer, founded in 1880, currently employs over 450 individuals and is led by Andrew Bromley. In recent years, Next has acquired various brands, including Cath Kidston, Joules, Seraphine, and Made.com.