The owner of British fashion label LK Bennett is in a last-ditch race to secure a financial saviour this Christmas, amid serious concerns the retailer could face collapse for a second time in six years.
Accelerated Sale Process Underway
Sky News has learned that the chain, founded by Linda Bennett in 1990, has called in City advisers from Alvarez & Marsal (A&M) to run a fast-track sale. Industry sources confirmed that A&M began sounding out potential buyers and investors in recent days.
The brand is currently owned by Byland UK, a company set up specifically in 2019 to rescue LK Bennett from its previous insolvency threat. Byland UK was formed by Rebecca Feng, who previously managed the brand's Chinese franchises.
A Steep Decline in Fortunes
Recent financial accounts reveal the stark challenges facing the once-thriving brand. For the period ending 27 January 2024, LK Bennett Fashion posted a post-tax loss of £3.5 million on a turnover of £42.1 million. This represented a sharp fall from sales of £48.8 million the previous year.
At its peak, LK Bennett was a high street staple with around 200 branded outlets globally, including in the US, China, and Russia. Today, it operates from just nine standalone UK stores and 13 concessions.
The directors' report noted a dividend of £229,000 was paid early in the year when performance was stronger, but no further dividends are recommended due to the revenue decline.
Royal and Political Patronage Fades
Linda Bennett founded the eponymous business with a single store in Wimbledon in 1990, aiming to bring a touch of Bond Street style to the high street. Her designs, particularly the iconic kitten heels, earned her a loyal following.
The brand counted the Princess of Wales and former Prime Minister Theresa May among its most prominent customers. Ms Bennett sold the business for an estimated £100 million in 2008 but bought it back in 2017 before it fell into administration in 2019, leading to 15 store closures.
It remains unclear whether a sale of the loss-making business is likely or if existing backers will inject more funds. Advisers are also understood to have drawn up contingency insolvency plans, a common step in accelerated sale processes.
LK Bennett has been contacted for comment, while Alvarez & Marsal declined to comment.
