LK Bennett urgently seeks buyer after six year revival attempt fails

LK Bennett, the well known British womenswear brand once synonymous with upper middle class elegance, has been placed on the market less than six years after its last rescue from administration. The company, revered for its blend of accessibility and aspirational style, has engaged Alvarez and Marsal to secure a buyer as financial pressures mount during the crucial Christmas trading period.

Founded by Linda Bennett in 1990, the brand began in Wimbledon Village, southwest London, and quickly established itself as a mainstay in British fashion. It positioned itself as a bridge between high street retailers and the luxury boutiques of Bond Street. LK Bennett’s prominence soared through connections to the Princess of Wales, who regularly wore the brand’s nude court shoes, making them an international hallmark of refined, understated luxury. At its peak, LK Bennett boasted 200 stores.

However, shifting retail trends and increased competition began to undermine the brand’s unique proposition. The late 2010s were challenging, following Bennett’s sale of her majority stake in 2008. A subsequent identity crisis culminated in the company entering administration in 2019, after which Byland UK, its Chinese franchise partner, acquired the business. This change led to significant downsizing and reduced retail presence, with just nine standalone shops and select concessions remaining in operation today.

Recent years have seen a volatile recovery for LK Bennett. A temporary post pandemic uptick in eventwear, driven by delayed weddings and the return of public gatherings, was short lived. By 2024, the brand reported a pre tax loss of nearly three point two million pounds, attributed to weakened consumer spending amid the cost of living crisis and persistent inflation.

Industry analysts attribute part of LK Bennett’s struggles to broader changes in womenswear preferences. Trends have shifted towards either more casual, versatile dressing or statement occasionwear. As a result, items such as the tea dress, a staple of the brand, have lost popularity. The decline in demand for high heeled shoes, once a core strength of LK Bennett, also contributed to diminishing sales. The lack of swift adaptation to these industry changes, exacerbated by the founder’s absence, is seen as a factor in the brand’s declining fortunes.

Financial filings reveal LK Bennett breached the covenants on an asset backed loan from Secure Trust Bank and has warned of possible further violations. Without an urgent capital injection or acquisition, the company faces an uncertain future in the competitive landscape of British fashion retail.