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 by filing a notice of intention at the High Court on January 14. This action initiates a temporary legal protection period that prevents creditors from pursuing legal measures for ten days.
This is the second instance in recent times where LK Bennett has issued a notice of intention, following a similar move on December 30. The company has been collaborating with Alvarez & Marsal advisors in the lead-up to these actions.
Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once operated 200 stores across the UK. Presently, it has nine standalone stores and 13 concessions.
In 2019, LK Bennett was rescued from administration by its current Chinese franchise partner, Byland UK, led by Rebecca Feng. Feng oversees the global operations from the UK and expressed plans to maintain the brand’s British design legacy and supply chain.
Reports have surfaced suggesting that Next is considering a potential deal for LK Bennett, focusing on acquiring the brand and intellectual property assets rather than 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 statements.
Additionally, Next is reportedly exploring the acquisition of family-owned shoe retailer Russell & Bromley, with assistance from advisory firm Retail Realisation. Russell & Bromley, established in 1880, has 37 stores in the UK and engaged Interpath Advisory to secure new external financing as part of a revitalization plan.
Sky News sources suggest that Next is not the only fashion brand expressing interest in Russell & Bromley. The retailer, currently overseen by Andrew Bromley, employs over 450 individuals. In recent years, Next has acquired various brands, including Cath Kidston, Joules, Seraphine, and Made.com.