Next eyes discount bid for LK Bennett as retailer nears collapse
Marks and Spencer and TFG London – which owns Phase Eight, White Stuff and Hobbs – have also been cited by analysts as potential suitors for the troubled brand
Register to get 1 free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Next is reportedly considering a cut-price bid for the fashion brand LK Bennett as the retailer prepares to appoint administrators, according to Sky News.
It is understood that the FTSE 100-listed group is among several parties weighing an approach for LK Bennett’s brand and other intellectual property assets. However, any offer from Next is expected to exclude the company’s small network of stores.
Story Stream: More on Next
Marks and Spencer and TFG London – which owns Phase Eight, White Stuff and Hobbs – have also been cited by analysts as potential suitors for the troubled brand.
News comes after LK Bennett filed a notice of intention to appoint administrators earlier this week, 10 days after Sky News reported that the company was urgently seeking a buyer to avoid collapse.
An acquisition would be consistent with Next’s recent strategy of buying distressed retail brands. The group has previously acquired Cath Kidston, Joules and maternitywear retailer Seraphine, and is currently examining a possible purchase of family-owned footwear chain Russell and Bromley.
Founded by Linda Bennett in 1990, LK Bennett has been working with advisers at Alvarez and Marsal in recent weeks. At its peak, the company expanded to around 200 stores in the UK and overseas, including in China, Russia and the US.
In the UK, the business now trades from nine standalone stores, with a further 13 operating as concessions, according to its website.
LK Bennett is owned by Byland UK, a company established in 2019 to rescue the brand from a previous insolvency. Byland UK was formed by Rebecca Feng, who previously ran LK Bennett’s Chinese franchise operations.
At the time of the rescue, Feng said the business would continue to operate from the UK and focus on maintaining the brand’s heritage through British design and its existing supply chain.
Accounts for LK Bennett Fashion for the year to 27 January 2024 show a post-tax loss of £3.5m on turnover of £42.1m, down from £48.8m the previous year.
Next, LK Bennett and Marks and Spencer have been approached for comment.
