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LK Bennett owner Byland UK has reportedly called in advisers from Alvarez and Marsal to run an accelerated sale process of the fashion brand amid concerns the business could be heading towards collapse for the second time in six years, according to Sky News.
News of the potential sale in recent days comes as the loss-making retailer races to secure funding ahead of the crucial Christmas trading period. However, it remains unclear whether a buyer will be found or whether the brand’s existing backers may inject further capital.
Byland UK was set up in 2019 by Rebecca Feng, who had run the brand’s Chinese franchise operations, to rescue LK Bennett from a previous brush with insolvency.
At its peak, the brand had counted the Princess of Wales and former prime minister Theresa May among its customers. It also operated about 200 stores in UK high streets and overseas in China, Russia and the US.
LK Bennet currently trades from nine standalone UK stores, with a further 13 operating as concessions.
For the year ended 27 January 2024, LK Bennett experienced a post-tax loss of £3.5m on turnover of £42.1m. That compared with revenues of £48.7m in the previous year.
The retailer had also paid a dividend of £229k at the start of the year “when performance was doing well”. However, directors added in the filing at Companies House that they do not recommend the payment of any further dividends, given the decline in revenue.
LK Bennett was founded in 1990 by Linda Bennett, who opened her first store in Wimbledon, southwest London, with the aim of “bringing a bit of Bond Street to the high street”. Bennett sold the business in 2008 for an estimated £100m to a consortium led by Phoenix Equity Partners, before buying it back in 2017. The company entered administration in 2019, leading to the closure of 15 stores.
At the time of the 2019 rescue, Feng said the business would continue to operate from the UK while preserving the brand’s heritage through British design and its existing supply chain.
LK Bennett has been approached for comment.
