LK Bennett seeks buyer as owner launches accelerated sale process

British fashion brand LK Bennett is urgently seeking a buyer, raising renewed concerns about its future just six years after its previous insolvency. According to Sky News, the company’s owner has appointed restructuring advisers Alvarez & Marsal (A&M) to run an accelerated sale process, with potential buyers and investors contacted in recent days. Industry sources told Sky News that contingency plans, including a possible insolvency, are being prepared should a deal fail to materialise.

Founded in 1990 by Linda Bennett, LK Bennett was once a dominant name on the UK high street, operating around 200 stores globally at its peak, including locations in China, Russia and the United States. Its footprint has since contracted sharply. In the UK, the brand now trades from just nine standalone stores, alongside 13 concessions listed on its website. The business is owned by Byland UK, a company established in 2019 to rescue LK Bennett from administration, and controlled by Rebecca Feng, who previously oversaw the brand’s Chinese franchise operations.

Recent financial results highlight the pressures facing the business. Accounts for LK Bennett Fashion for the year ending 27 January 2024 show a post-tax loss of 3.5 million pounds on turnover of 42.1 million pounds, down from 48.8 million pounds the previous year, Sky reported. The company paid a 229,000 pound dividend early in the year when trading was stronger, but directors later ruled out further payments following the decline in revenue. LK Bennett’s 2019 administration led to the closure of 15 stores, and it remains unclear how many employees are currently affected by the latest developments.

LK Bennett built its reputation on accessible luxury, with its designs worn by high-profile figures including the Princess of Wales and former UK prime minister Theresa May. The brand was sold in 2008 for an estimated 100 million pounds to a private equity-backed consortium before being reacquired by its founder.