A popular high street fashion brand endorsed by Kate Middleton is facing the possibility of entering administration. LK Bennett submitted a notice of intention to appoint an administrator at the High Court on January 14, signaling its readiness to enter administration and securing a temporary legal freeze against creditors for ten days.
This is the second time in recent weeks that LK Bennett has taken this step, following a similar notice issued on December 30. The brand has been collaborating with advisors at Alvarez & Marsal during this period.
Established in 1990 by Linda Bennett, known as the “Queen of the Kitten Heel,” LK Bennett previously operated 200 stores across the UK. However, it currently operates nine standalone stores and 13 concessions.
In 2008, Ms. Bennett sold the business for an estimated £100 million to a consortium led by private equity firm Phoenix Equity Partners. In 2019, the brand was rescued from administration by its current Chinese franchise partner, Byland UK, controlled by Rebecca Feng, who oversees the global business operations from the UK.
Reports suggest that Next is considering a potential deal for LK Bennett, possibly involving the acquisition of brand and intellectual property assets excluding retail outlets. LK Bennett recorded a post-tax loss of £3.5 million on a turnover of £42.1 million for the period ending January 27, 2024, based on its latest financial accounts.
Additionally, Next is reportedly eyeing the acquisition of family-owned shoe retailer Russell & Bromley. The advisory firm Retail Realisation is supporting Next in its pursuit of the 145-year-old footwear and accessories brand, which operates 37 stores in the UK.
Russell & Bromley had previously engaged Interpath Advisory to secure new external financing as part of a five-year turnaround strategy. Next is not the only fashion brand showing interest in Russell & Bromley, according to sources. The brand, founded in 1880 by George Bromley and Elizabeth Russell in Eastbourne, is currently managed by Andrew Bromley.
Next has made several brand acquisitions in recent years, including Cath Kidston, Joules, Seraphine, and Made.com.