A popular high street fashion brand, admired by Kate Middleton, is facing potential administration. LK Bennett has submitted a notice of intention to appoint an administrator, signaling a forthcoming administration process and providing a temporary legal shield against creditor actions for ten days. This marks the second time in recent weeks that LK Bennett has taken this step, with the company reportedly seeking guidance from advisors at Alvarez & Marsal.
Founded in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett once boasted 200 stores nationwide but now operates only nine standalone stores and 13 concessions. In 2008, Ms. Bennett sold the business for around £100 million to a consortium led by private equity firm Phoenix Equity Partners.
In 2019, the struggling brand was saved from administration by its current Chinese franchise partner, Byland UK, overseen by Rebecca Feng. Feng, who manages the Chinese operations and now leads the global business from the UK, expressed commitment to preserving the brand’s heritage by leveraging British design and existing supply chains.
There are reports suggesting that Next is considering a potential deal for LK Bennett, possibly involving brand and intellectual property assets but excluding 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 records.
Additionally, Next is rumored to be eyeing the acquisition of family-owned shoe retailer Russell & Bromley, with plans in motion to engage advisory firm Retail Realisation for the pursuit. Russell & Bromley, established in 1880, is currently managed by Andrew Bromley and operates 37 stores in the UK. The company had previously sought new external financing as part of a five-year turnaround strategy.
Other fashion brands, besides Next, have also shown interest in Russell & Bromley, according to sources. Next has a track record of acquiring brands like Cath Kidston, Joules, Seraphine, and Made.com in recent years.