LK Bennett owes £34 million to unsecured creditors as standalone stores close

LK Bennett's unsecured creditors are owed over £34 million, filings from Companies House have revealed. The news coincides with the brand's closure of its remaining standalone stores, following "exceptional demand".

The filings dated 23 April revealed that unsecured creditors, which include suppliers, landlords and anyone who is owed money without any legal claim over specific company assets, received a payout equivalent to 2.65p per pound owed.

Of the over £35 million claimed by LK Bennett's unsecured creditors, one dividend of £936,902 was paid out and distributed by the administrators on 17 June 2025. This means they are set to lose out on £34 million.

The Companies House filings noted that secured and preferential creditors were both paid out in full. As unsecured creditors are not the first in line to receive payouts, it is common for debts to be written off and absorbed.

Coinciding with the news, the upmarket British fashion brand also announced on Instagram that its standalone stores had closed earlier than planned, but that its concessions would remain open for a few more days. The closure of its stores puts 89 jobs at risk.

At the beginning of the month, the brand had announced that it would be closing down its website and that stores would remain open only for a "limited time".

The brand was acquired by US investment firm Gordon Brothers in January, but the deal only included the brand name and intellectual property and not its nine standalone stores and 13 concessions.

Gordon Brothers had announced that it would focus on transitioning LK Bennett to an asset-light model, as it had with the successful revitalisation and expansion of the Laura Ashley brand globally. It said that it will also invest in product development and marketing for its portfolio of brands.

The brand, best known for its limited-edition ready-to-wear collections, signature shoes, bags and accessories, filed its intention to appoint administrators in January after failing to find a buyer, with NEXT previously among the mooted suitors.

Founded in the 1990s by Linda Bennett, LK Bennett, once a firm favourite of the Duchess of Cambridge, started with a single boutique in Wimbledon. Pre-administration, the brand employed about 280 staff.

TheIndustry.fashion reached out to LK Bennett for comment.