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LK Bennett has launched a CVA proposal, which will result in five store closures and a small number of job losses.
The womenswear retailer will also move its remaining shops to turnover-based rents in order to “mitigate the ongoing financial impact of the Covid-19 pandemic”, Drapers reported.
Currently, the business employs 400 people, 300 of whom are in retail roles, and has 18 stores, which are all closed under the Covid-19 lockdown.
On 7 March, LK Bennett appointed EY as administrator of its UK business, who extended the company’s administration process for a further year.
A spokeswoman for LK Bennett told Drapers: “LK Bennett is currently negotiating a CVA to mitigate the ongoing financial impact of the Covid-19 pandemic. LK Bennett is one of many retail brands that has faced significant disruption to sales across two lockdown periods in the UK and Ireland
“Eventwear and workwear, ordinarily our biggest strengths as a fashion brand, have both been challenging to sell during the pandemic, as well as the added difficulty of a lack of international tourism to London, where the majority of store sales would usually take place.”
She added: “Despite our best efforts and the support of all stakeholders, sales are not expected to fully bounce back until well into 2021.
“We are committed to doing the right thing; in order to secure as many jobs as possible and continue serving our customers to the best of our ability we are working towards reaching an agreement with our creditors.”
