British fashion retailer Next is considering a price-cutting approach to the brand and intellectual property of struggling womenswear brand LK Bennett. News from heaven.
The news comes as LK Bennett moves closer to appointing administrators.
Retail industry sources said the group is one of several interested parties evaluating a potential acquisition, although they are not expected to pursue a deal that includes LK Bennett’s remaining brick-and-mortar store network.
Other names mentioned by News from heaven‘ Analysts as potential bidders include Marks & Spencer and TFG London, which owns Phase Eight, White Stuff and Hobbs.
Next declined to comment on the news and a Marks & Spencer representative said the group is not looking to acquire LK Bennett.
Any move by Next would be consistent with its recent focus on buying up struggling brands.
The retailer previously acquired Cath Kidston, Joules and Seraphine, and is currently reviewing a potential purchase of family footwear business Russell & Bromley.
LK Bennett lodged a notice of intention to appoint administrators earlier this week.
In recent weeks, the company has received advice from restructuring specialists at Alvarez & Marsal.
The brand was founded in 1990 by Linda Bennett and, at its peak, operated nearly 200 stores in the UK and international markets including China, Russia and the US.
Its current UK presence has been reduced to nine standalone stores, along with 13 concessions listed online.
The label is owned by Byland UK, a vehicle set up in 2019 to save LK Bennett from a previous insolvency.
Byland UK was founded by Rebecca Feng, who had previously overseen the brand’s franchise operations in China.
LK Bennett’s financial accounts for the year ending January 27, 2024 show an after-tax loss of £3.5m ($4.7m) on turnover of £42.1m, compared to revenue of £48.8m the previous year.
Linda Bennett sold the company in 2008 for an estimated £100m to a consortium led by Phoenix Equity Partners, before buying it back in 2017.
A subsequent administration process in 2019 resulted in the closure of 15 stores.
“Next weighs bid for LK Bennett brand assets” was created and originally published by Retail Insight Network, a brand owned by GlobalData.
The information contained on this site has been included in good faith for general information purposes only. It is not intended to be advice on which you should rely, and we make no representation or warranty, whether express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.
