A popular high street fashion brand favored by Kate Middleton is facing the possibility of entering administration. LK Bennett has submitted a notice of intention to appoint an administrator in the High Court, indicating its readiness to enter administration and obtaining a temporary legal protection against creditor actions for ten days.
This move marks the second time in a short period that LK Bennett has issued such a notice, with the previous one filed 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 boasted 200 stores across the UK. However, it currently operates only nine standalone stores and 13 concessions.
In 2008, Ms. Bennett sold the business for around £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, which is overseen by Rebecca Feng, managing the global business from the UK.
Recent reports suggest that Next is showing interest in a potential deal with LK Bennett, potentially involving the brand and intellectual property assets but not 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 reportedly eyeing the acquisition of the family-owned shoe retailer Russell & Bromley. It is collaborating with advisory firm Retail Realisation on pursuing the 145-year-old shoe and bag retailer, which operates 37 stores across the UK. Russell & Bromley had previously engaged Interpath Advisory to secure new external financing as part of a turnaround plan.
Other fashion brands, besides Next, have also shown interest in Russell & Bromley, according to sources. Founded in 1880 by George Bromley and Elizabeth Russell in Eastbourne, Russell & Bromley is now led by Andrew Bromley and employs over 450 individuals. In recent years, Next has acquired brands like Cath Kidston, Joules, Seraphine, and Made.com.