A FASHION brand famously adored by the Princess of Wales is on the hunt for a financial lifeline this weekend.
LK Bennett, the upmarket retailer known for its “kitten heels” and classy frocks, is racing to find a buyer or new investor before the festive season is out.
According to a report by Sky News, the company is working with City advisers to explore an “accelerated sale,” casting uncertainty over the future of the well-known High Street name.
It is understood that LK Bennett has drafted in experts from Alvarez & Marsal (A&M) to help secure the business‘s future.
Industry sources have revealed that advisers have begun sounding out potential buyers and investors in just the last few days.
While the exact outcome remains unclear, the move suggests the brand is keen to bring in fresh cash or a new owner quickly.
While consultants often draw up contingency plans for insolvency in these situations, the current focus is on finding a “saviour” for the business.
It comes six years after the chain was rescued from administration in 2019.
Once a global giant with 200 outlets, its UK footprint now consists of just nine standalone stores and 13 concessions.
Founded in 1990 by Linda Bennett, the brand was originally designed to “bring a bit of Bond Street to the High Street.”
Ms Bennett, who earned the nickname “Queen of the Kitten Heel,” built a brand that became a wardrobe staple for professional women.
The Princess of Wales, Kate Middleton, has been pictured wearing LK Bennett dresses and shoes on countless occasions, helping to cement the brand’s status as a British favourite.
Former Prime Minister Theresa May was also a high-profile fan.
Sales plummet
Despite its royal credentials, the retailer is navigating a tough financial landscape.
Accounts for the year ending January 2024 revealed a post-tax loss of £3.5million.
Sales have also dipped, dropping from £48.8million in 2023 to £42.1million in 2024.
LK Bennett paid a £229,000 dividend early in the year, when trading was strong.
However, in its most recent accounts, the directors stated: “Given the decline in revenue, the directors do not recommend the payment of any further dividends.”
This isn’t the first time the retailer has faced challenges.
After founder Linda Bennett sold the business for a reported £100million in 2008 – and later bought it back – the company collapsed into administration in 2019, resulting in store closures.
It was rescued five years ago by Rebecca Feng, who ran the brand’s Chinese franchises, under a new company called Byland UK.
At the time of the rescue, Ms Feng vowed to protect the “undoubted heritage of the brand.”
It is currently unclear whether existing backers will inject more cash or if a full sale is the most likely route.
Both LK Bennett and their advisers A&M have declined to comment on the reports.
