L.K. Bennett liquidation: unsecured creditors to lose 34 million pounds

Unsecured creditors of the London-based fashion brand L.K. Bennett are set to lose over 34 million pounds (45.91 million dollars), according to recent filings from Companies House. The news coincides with the brand closing its remaining standalone boutiques earlier than anticipated following what the retailer described as “exceptional demand” for its final stock.

A progress report issued by joint liquidator Craig Lewis of the UK firm Ernst & Young (EY) revealed that the adjudication of non-preferential unsecured claims reached a total of 35.32 million pounds. A first and final dividend was declared and paid on June 17, 2025, at a rate of 2.65 pence in the pound. This resulted in a total distribution of 0.94 million pounds to unsecured creditors, leaving more than 34 million pounds in claims unpaid.

Secured and preferential creditors paid in full

While unsecured creditors, including various suppliers and landlords, face significant losses, the filings confirmed that secured and preferential creditors were paid in full during the former administration period. In the UK, secured and preferential creditors maintain legal priority for payouts during insolvency proceedings, often leaving unsecured parties to absorb the remaining debt.

The liquidation follows a turbulent period for the upmarket label. L.K. Bennett filed its intention to appoint administrators in January 2026 after failing to secure a buyer, despite reports that the UK retail giant Next had been a potential suitor.

Transition to asset-light model under Gordon Brothers

In January, the US investment firm Gordon Brothers acquired the brand name and intellectual property (IP) of L.K. Bennett. The deal did not include the company's nine standalone stores or 13 concessions. Gordon Brothers stated its intention to transition the label to an asset-light model, mirroring its strategy with the global revitalisation of the British brand Laura Ashley.

As part of this transition, L.K. Bennett announced on Instagram that its physical boutiques closed earlier than planned. While the brand’s concessions were expected to remain open for a brief period to clear remaining stock, the closure of the standalone estate has reportedly put 89 jobs at risk. Before the administration, the company employed approximately 280 staff.

Conclusion of liquidation proceedings The liquidation process is now nearing its end. Lewis and his fellow joint liquidator, Samuel Woodward, noted that the company’s affairs will shortly be fully wound up. Woodward replaced Daniel Hurd as joint liquidator on October 31, 2025, following a court order.

Founded in the 1990s by Linda Bennett, the brand rose to prominence from a single boutique in Wimbledon to become a staple of British ready-to-wear, famously worn by the Princess of Wales. The liquidators have already applied for and received a court order for discharge from liability for the former joint administrators, which became effective in February 2026.