A MUCH-LOVED High Street fashion chain famous for kitting out the Princess of Wales has filed to appoint administration for the second time in weeks.
LK Bennett, the premium brand known for its classy frocks and trademark “kitten heels,” has lodged a second desperate legal bid to protect itself from collapse.
The retailer filed a notice of intention to appoint an administrator at the High Court on January 14, leaving its remaining workforce and loyal shoppers fearing for the future.
The chain only just filed the exact same notice on December 30 in a last-ditch attempt to survive the festive period.
The move essentially hits the pause button on debt collectors, buying the panic-stricken directors crucial breathing space to stitch together a survival plan before the shutters come down for good.
Bosses now have a strict 10-day window to find a “white knight” investor or a new buyer to rescue the business, as the clock ticks loudly on yet another British fashion icon.
Once a global giant with over 200 bustling outlets, the brand’s presence has shrunk dramatically, now operating just nine standalone stores and 13 concessions across the UK.
The uncertain news leaves staff at the remaining shops and concessions in limbo.
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, dubbed the “Queen of the Kitten Heel,” the label was originally designed to “bring a bit of Bond Street to the High Street” for professional women.
It became a wardrobe staple for the Princess of Wales, Kate Middleton, who has been snapped wearing their sledge pumps and elegant dresses on countless royal engagements, cementing its status as a firm British favourite.
Even former Prime Minister Theresa May was a high-profile fan of the brand’s sensible-yet-chic footwear, often sporting their heels during her time at Number 10.
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.
What does going into administration mean?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company’s assets and business to repay creditors any outstanding debts.
Once a company enters administration, a “moratorium” is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they’ve been appointed.
They try to stop the company from being liquidated (closing down), and if it can’t it pays as much of a company’s debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
