A popular high street fashion brand, a favorite of Kate Middleton, is facing the possibility of entering administration. LK Bennett has taken steps towards appointing an administrator, which includes a temporary legal protection against creditor actions for ten days.
This marks the second instance in a short period that LK Bennett has initiated such proceedings. The company has been collaborating with advisers at Alvarez & Marsal in recent weeks. Established 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.
In 2019, LK Bennett was saved from administration by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng. Feng, overseeing Chinese operations, now leads the global business from the UK. The business is planned to continue operating in the UK, leveraging British design and its existing supply chain to maintain the brand’s heritage.
Next is reportedly considering a potential deal for LK Bennett, focusing on acquiring the brand and other intellectual property assets, excluding the 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 accounts.
Additionally, Next is exploring a takeover of the family-owned shoe retailer Russell & Bromley, a 145-year-old company with 37 stores in the UK. Russell & Bromley had previously sought new external financing as part of a five-year turnaround plan. Next is not the only fashion brand eyeing Russell & Bromley, as other brands have also shown interest, according to sources. Founded in 1880 by George Bromley and Elizabeth Russell, Russell & Bromley is currently managed by Andrew Bromley.
