LK Bennett ‘on brink of collapse’ as it looks to appoint administrators
British fashion brand LK Bennett appears to be on the brink of collapse for the second time in six years after filing to appoint administrators.
The company has reportedly submitted an application to the High Court to appoint an administrator, putting around 280 jobs at risk, according to The Guardian.
The move suggests the business has failed in its widely publicised efforts to secure new investment. Earlier this month, LK Bennett hired City advisers to seek a buyer amid mounting concerns over its financial position.
If administrators are formally appointed, it would mark the retailer’s second insolvency in recent years.
In 2019, LK Bennett fell into administration after its owners were unable to secure fresh funding. The brand was subsequently rescued out of insolvency by Byland UK, a company established by Chinese franchise partner Rebecca Feng.
Founded in 1990 by Linda Bennett, LK Bennett enjoyed significant international success in its heyday, operating more than 200 stores across the UK, the US, China and Russia.
The brand was also a favourite of the Princess of Wales. Today, however, its footprint has shrunk dramatically, with just nine standalone stores and around 13 concessions remaining.
Financial filings underline the challenges facing the business. Accounts for LK Bennett Fashion for the year ended 27 January 2024 show a post-tax loss of £3.5 million on turnover of £42.1 million, down sharply from £48.8 million the previous year.
LK Bennett has been approached for comment.
