LK Bennett Files High Court Application to Appoint Administrator Amid Financial Struggles
LK Bennett, the fashion brand owned by China-based backers, has filed a High Court application to appoint an administrator to the business. The group employs about 280 staff and operates nine UK stores and 13 concessions, including locations in Ireland and Jersey.
Founded by Linda Bennett in 1990, the company was acquired out of insolvency in 2019 by Chinese franchise partner Rebecca Feng, who had outbid Sports Direct founder Mike Ashley. The move to appoint an administrator signals ongoing financial difficulties for the group.
In its accounts to January 2024, LK Bennett posted a loss of £3.2 million and had borrowings of nearly £22 million. Auditor Grant Thornton warned of material uncertainty around the company’s ability to continue as a going concern and noted a breach of debt covenants, with a deadline to renegotiate the debt next month. While a letter from the bank indicated that facilities would remain available at least until 31 January 2026, no formal covenant waiver has been secured.
If the administration proceeds, LK Bennett would be entering insolvency for the second time in six years, having first collapsed into administration in 2019. This development suggests the business has struggled to find a saviour amid ongoing financial pressures.
