Fashion brand LK Bennett on brink of collapse for second time putting upto 280 jobs at risk

"The upmarket fashion retailer LK Bennett is on the brink of collapse for the second time in six years after filing an application to appoint administrators. Court filings show the business submitted papers to the High Court on Tuesday, signalling that efforts to secure fresh funding or a buyer may have failed. The move puts around 280 jobs at risk across the group."

"Founded in 1990 by Linda Bennett, LK Bennett became synonymous with polished British style and built a loyal following that included senior politicians and members of the royal family. However, the brand has struggled to regain financial stability since its first insolvency in 2019. In its previous collapse, LK Bennett fell into administration after failing to secure new investment and was subsequently acquired out of insolvency by its Chinese franchise partner, Rebecca Feng. That deal followed a competitive process in which she beat rival interest from Mike Ashley, founder of Sports Direct."

"According to LK Bennett's most recent accounts, covering trading up to the end of January 2024, the company reported losses of £3.2 million and borrowings of almost £22 million. Auditors Grant Thornton raised a red flag over the company's future, warning of a "material uncertainty related to going concern". The accounts disclosed that LK Bennett had breached agreements with its lenders and faced a deadline to renegotiate its debt facilities."

LK Bennett filed an application to appoint administrators after court papers indicated efforts to secure fresh funding or a buyer may have failed, putting about 280 jobs at risk. The brand, founded in 1990 by Linda Bennett, has struggled financially since entering insolvency in 2019 and was acquired out of administration by Chinese franchise partner Rebecca Feng. The retailer now operates nine standalone UK stores and 13 concessions. Latest accounts to January 2024 recorded losses of £3.2 million and borrowings near £22 million. Auditors warned of a "material uncertainty related to going concern", and the company had breached lender agreements and faced a debt renegotiation deadline.

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