The British fashion label LK Bennett, famously worn by the Princess of Wales, is in a race against time to secure a financial 'saviour' amid fears it could collapse for the second time in just six years.
A Royal Favourite in Peril
Industry sources confirm the design house has enlisted restructuring consultants Alvarez & Marsal (A&M) to oversee a swift sale process. The firm has begun actively sounding out potential investors and buyers in recent days in a bid to secure the brand's future.
Founded in 1990 by Linda Bennett with a £15,000 bank loan and £13,000 of her savings, the brand's mission was to bring a touch of luxury Bond Street style to the high street. From its first store in Wimbledon Village, it grew into a major force with 200 UK stores and international branches.
LK Bennett carved out a unique niche, offering premium designs at a more accessible price point, and became a go-to for high-profile figures. The founder's signature 'kitten heel' and sharp designs were regularly spotted on Princess Catherine, former Prime Minister Theresa May, and presenter Holly Willoughby.
A Dramatic Decline and Previous Rescue
Today, the retail footprint has shrunk dramatically to just nine standalone shops and 13 concessions. The company is now owned by Byland UK, a firm established in 2019 specifically to rescue LK Bennett from its first insolvency.
That previous administration, led by Chinese franchise owner Rebecca Feng, resulted in 15 store closures. Feng had pledged to maintain the brand's British heritage and supply chain. However, recent accounts reveal a troubled picture.
For the financial period ending January 27, 2024, LK Bennett recorded a post-tax loss of £3.5 million. While a £229,000 dividend was paid early in the year when performance was stronger, directors have stated no further dividends will be paid due to declining revenue.
An Uncertain Future
It remains unclear whether existing investors are willing to inject more funds or if a sale of the designer label is feasible. Advisers are reportedly drawing up contingency plans, typical in an accelerated sale process during insolvency proceedings.
The brand's journey has seen dramatic highs and lows. Founder Linda Bennett sold the business for an estimated £100 million to private equity firm Phoenix Equity Partners in 2008, bought it back in 2017, only to see it fall into administration two years later.
As the hunt for a buyer intensifies, the future of this iconic British brand, once synonymous with polished, royal-approved style, hangs in the balance.
