The proprietor of the style model LK Bennett is that this weekend racing to discover a saviour amid considerations that it could possibly be heading for collapse for the second time in six years.
Sky Information has learnt that the clothes chain, which was based by Linda Bennett in 1990, is working with advisers at Alvarez & Marsal (A&M) on an accelerated sale course of.
Business sources stated on Saturday that A&M had begun sounding out potential consumers and traders in the previous couple of days.
At one stage, LK Bennett was among the many most recognisable manufacturers on the excessive avenue, increasing to 200 branded shops within the UK and abroad markets together with China, Russia and the US.
In its dwelling promote it now trades from simply 9 standalone shops, with an extra 13 listed as concessions on its web site.
It was unclear whether or not a sale of the loss-making model was possible or whether or not LK Bennett’s present backers is perhaps ready to inject extra funding into the enterprise.
Contingency plans for an insolvency are ceaselessly drawn up by advisers drafted in to run accelerated sale processes.
The model is owned by Byland UK, an organization established in 2019 for the aim of rescuing LK Bennett from a earlier brush with insolvency.
Byland UK was shaped by Rebecca Feng, who ran LK Bennett’s Chinese language franchises.
On the time of that deal, Ms Feng stated: “Below our plan, the enterprise will proceed to function out of the UK, seeking to keep the long-standing and undoubted heritage of the model.
“This can be achieved by a mix of working with high quality British design, and the enterprise’s present provide chain.”
Accounts for LK Bennett Trend for the interval ended January 27, 2024 present the corporate made a post-tax lack of £3.5m on turnover of £42.1m.
The figures confirmed a steep loss in gross sales from £48.8m in 2023.
In accordance with the accounts, LK Bennett paid a dividend of £229,000 “at first of the 12 months when efficiency was doing nicely”.
“Given the decline in income, the administrators don’t advocate the fee of any additional dividends.”
Ms Bennett based the eponymous chain by opening a retailer in Wimbledon, southwest London, in 1990, and promised to “deliver a little bit of Bond Avenue to the excessive avenue”.
Her eye for design earned her the nickname ‘queen of the kitten heel’ and noticed her merchandise worn by the Princess of Wales and Theresa Might, the previous prime minister.
In 2008, Ms Bennett offered the enterprise for an estimated £100m to a consortium led by the non-public fairness agency Phoenix Fairness Companions.
She retained a stake, after which purchased again the remaining fairness in 2017.
The corporate’s administration in 2019 resulted within the closure of 15 shops.
It was unclear how many individuals at the moment are employed by LK Bennett.
LK Bennett has been contacted for remark, whereas A&M declined to remark.
