Next Weighs Cut-Price Offer for Struggling Fashion Brand LK Bennett
Next is considering making a cut-price offer to acquire LK Bennett's brand and intellectual property assets as it prepares to call in administrators. However, the fashion retailer's physical outlets are unlikely to be part of the potential deal.
Other potential buyers under consideration include Marks & Spencer and TFG London, the owner of brands such as Phase Eight, White Stuff, and Hobbs.
LK Bennett filed a notice of intention to appoint administrators earlier this week amid increasing risk of collapse, a development initially disclosed by Sky News ten days prior.
The brand, founded by Linda Bennett in 1990, is currently owned by Byland UK, a vehicle created in 2019 to rescue the company. Byland UK was formed by Rebecca Feng, who previously managed LK Bennett's Chinese franchises.
In the UK, LK Bennett operates nine standalone stores along with 13 concessions as listed on its website.
Financial accounts for the period ending 27 January 2024 reveal a post-tax loss of £3.5 million on a turnover of £42.1 million, down from £48.8 million in 2023.
LK Bennett's history includes a 2008 sale to a Phoenix Equity Partners-led consortium for around £100 million, with Linda Bennett retaining a stake and repurchasing remaining equity in 2017. The company entered administration in 2019, leading to the closure of 15 stores.
Next has a notable track record of acquiring distressed retailers, including Cath Kidston, Joules, and Seraphine, and is currently evaluating the purchase of Russell & Bromley.
