LK Bennett stores at risk of closure following acquisition out of administration by Gordon Brothers

The long-term outlook for LK Bennett’s store portfolio remains uncertain, following the premium womenswear acquisition out of administration by US investment firm Gordon Brothers on Wednesday, January 28.

The new owners, who own Laura Ashley and Poundland, acquired the LK Bennett brand and its intellectual property (IP) assets just a day after joint administrators Alvarez and Marsal’s John Noon and Mark Firmin were appointed. 

However, the deal did not include LK Bennett’s store portfolio, which includes nine standalone locations and 13 concession stands across the UK and Ireland. Now it remains unclear whether the stores and concessions will continue to operate or will be closed down, potentially impacting as many as 280 employees.

A statement published on the LK Bennett website notes that “the LK Bennett stores were not included in the transaction and continue to trade under the administration. Online sales via the LK Bennett website continue for the foreseeable future.”

LK Bennett is expected to close or significantly reduce the number of its stores following its acquisition by the Gordon Brothers, who previously outlined a shift to an “asset-light model."