Fashion giant plunges into administration but could be saved by Next | UK | News
A well-known British fashion brand has gone into administration, reportedly putting around 280 jobs at risk, but a potential rescue of retail heavyweight Next may still be on the cards. LK Bennett gave notice of its intention to appoint administrators just days after it became clear the retailer was racing to find a buyer to prevent the business from going under. The business has been working with restructuring consultants Alvarez & Marsal in recent weeks.
Next in line are retailers who are considering bidding for parts of the business. Sky News reported. Next is understood to be considering a discounted price offer that focuses on the brand name and its intellectual property, including designs and trademarks, rather than taking over LK Bennett’s physical store network.
Next has taken ownership of brands such as Cath Kidston, Joules and Seraphine in recent years, often without retaining department store properties.
The retailer is also examining the acquisition of footwear retailer Russell & Bromley.
Other fashion groups, including Marks & Spencer and Phase Eight owner TFG London, Hobbs and White Stuff, have been named by analysts as companies that could at least explore a buyout, but there is no confirmation that any formal offers have been made.
Founded in 1990 by Linda Bennett, LK Bennett has rapidly grown from a single store in Wimbledon into an international fashion name; at one point it operated nearly 200 stores in the UK, US, China and Russia.
The brand became famous for its signature heels, particularly those worn by the Princess of Wales and former prime minister Theresa May, earning Ms Bennett the nickname “queen of kitten heels”.
Today, LK Bennett operates just nine independent stores in the UK, as well as around 13 concessions.
The brand is currently owned by Byland UK, a company founded in 2019 by Rebecca Feng, who was previously responsible for LK Bennett’s China franchise, to rescue the business from its initial management. Despite this intervention, financial pressures continued to increase.
Accounts for the year ending January 27, 2024, show LK Bennett recorded a loss of £3.5m on after-tax income, reaching £42.1m, down sharply from £48.8m the previous year.
