A popular high street fashion brand, admired by Kate Middleton, is facing the possibility of going into administration. LK Bennett has taken a step towards appointing an administrator by filing a notice of intention at the High Court on January 14, a move that grants a temporary legal pause preventing creditors from pursuing legal actions for ten days.
This is the second time in a short period that LK Bennett has initiated such a notice, having previously done so on December 30. The company has been collaborating with advisers at Alvarez & Marsal in recent times.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once operated 200 stores across the UK. Today, it has downsized to nine standalone 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. In 2019, LK Bennett was saved from administration by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng, who now oversees the global business from the UK.
There have been reports suggesting that Next is considering a potential deal for LK Bennett, which may involve acquiring the brand and intellectual property assets but not the physical 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 most recent financial accounts.
Additionally, Next is reportedly showing interest in acquiring family-owned shoe retailer Russell & Bromley, which has 37 stores across the UK. Russell & Bromley had previously engaged Interpath Advisory to secure new external financing as part of a turnaround plan.
Next’s pursuit of Russell & Bromley is not exclusive, as other fashion brands are also reportedly eyeing the renowned shoe and bag retailer. Founded in 1880 by George Bromley and Elizabeth Russell in Eastbourne, Russell & Bromley is currently managed by Andrew Bromley. Next has expanded its brand portfolio in recent years with acquisitions like Cath Kidston, Joules, Seraphine, and Made.com.
