The owner of the fashion brand, LK Bennett, is racing this weekend to find a saviour amid concerns that it could collapse for the second time in six years.
Sky News has learnt that the clothing chain, which was founded by Linda Bennett in 1990, is working with advisers at Alvarez & Marsal (A&M) on an accelerated sale process.
Industry sources said on Saturday that A&M had begun sounding out potential buyers and investors in the last few days.
LK Bennett, once one of the most recognisable brands on the high street, expanded to 200 branded outlets in the UK and overseas markets such as China, Russia, and the US.
In its home market, it now trades with just nine standalone stores, with a further 13 listed as concessions on its website.
LK Bennett’s existing backers might be prepared to inject additional funds into the business.
It was unclear whether a sale of the loss-making brand was likely or whether LK Bennett’s existing backers might be prepared to inject more funding into the business.
Advisers frequently draft contingency plans for an insolvency to facilitate accelerated sale processes.
The brand is owned by Byland UK, a company established in 2019 for the purpose of rescuing LK Bennett from a previous brush with insolvency.
Rebecca Feng, who oversaw LK Bennett’s Chinese franchises, founded Byland UK.
At the time of that deal, Ms Feng said, “Under our plan, the business will continue to operate out of the UK, looking to maintain the long-standing and undoubted heritage of the brand.
“We will achieve this through a combination of working with quality British design and leveraging the business’s existing supply chain.”
Accounts for LK Bennett Fashion for the period ended January 27, 2024, show the company made a post-tax loss of £3.5m on turnover of £42.1m.
The figures showed a steep loss in sales from £48.8m in 2023.
According to the accounts, LK Bennett paid a dividend of £229,000 “at the start of the year, when performance was going well.”
“Given the decline in revenue, the directors do not recommend the payment of any further dividends.”
Ms. Bennett founded the eponymous chain by opening a store in Wimbledon, southwest London, in 1990, and she promised to “bring a bit of Bond Street to the high street.”
Her eye for design earned her the nickname ‘queen of the kitten heel’ and saw her products worn by the Princess of Wales and Theresa May, the former prime minister.
In 2008, Ms Bennett sold the business for an estimated £100m to a consortium led by the private equity firm Phoenix Equity Partners.
She retained a stake and then bought back the remaining equity in 2017.
The company’s administration in 2019 resulted in the closure of 15 stores.
The number of employees at LK Bennett remains unclear.
We contacted LK Bennett for comment, but A&M declined to respond.
