LK Bennett in race to find new buyer to save business
LK Bennett has called in City advisers to find a new buyer amid concerns the business could collapse for the second time in six years.
The premium British womenswear fashion chain is working with advisers at Alvarez & Marsal (A&M) on an accelerated sale process, according to Sky News.
LK Bennett is currently owned by Byland UK, originally established in 2019 by Rebecca Feng, who ran LK Bennett's Chinese franchises. The company rescued the retailer from a previous scrape with insolvency.
Industry sources said on Saturday that A&M had begun sounding out potential buyers and investors in the last few days as the countdown to Christmas ramps up.
In its heyday, LK Bennett, which was founded by Linda Bennett in 1990, had over 200 branded outlets in the UK, US, China and Russia, and was a favourite of the Princess of Wales. Now it trades from just nine standalone stores and around 13 concessions.
It still remains possible that the loss-making retailer’s existing backers inject more funding into the business, but contingency plans for an insolvency are regularly drawn up when advisors are called in.
Accounts for LK Bennett Fashion for the period ended 27 January 2024 show the company made a post-tax loss of £3.5 million on turnover of £42.1 million, while the figures showed a steep loss in sales from £48.8 million in 2023.
