LK Bennett Files High Court Application to Appoint Administrator Amid Financial Uncertainty
LK Bennett has filed a High Court application to appoint an administrator, putting around 280 employees at risk. The business, owned by China-based backers, is facing significant financial difficulties. Its accounts up to 31 January 2024 show a loss of £3.2 million and borrowings of almost £22 million.
The group's auditor, Grant Thornton, flagged material uncertainty surrounding its ability to continue as a going concern and noted that LK Bennett had breached debt covenants with its lenders. While lenders have indicated they will continue facilities at least until 31 January 2026, no formal covenant waiver has been granted yet, and a debt renegotiation deadline is expected next month.
This is LK Bennett's second insolvency in six years; the brand previously collapsed into administration in 2019 and was subsequently acquired from insolvency by Rebecca Feng, overcoming rival bids including one from Sports Direct's Mike Ashley. The group currently operates nine UK stores and 13 concessions across the UK, Ireland, and Jersey.
At the time of reporting, LK Bennett had not issued any public comments regarding the situation.
