A clothes retailer in style with the Royal Family is dealing with administration for the second time in six years. LK Bennett filed for administration this week with the High Court to nominate an administrator.
The model, based in 1990, additionally collapsed in 2019 after homeowners failed to seek out an investor. It was purchased by Rebecca Feng, a Chinese franchise accomplice. She promised on the time to guard the “long-standing and undoubted heritage of the brand”. Feng mentioned: “This will be achieved through a combination of working with quality British design, and the business’s existing supply chain”. But from January 2023 to January 2024, LK Bennett misplaced £3.2 million and had borrowings of just about £22 million. Sales additionally dropped from £48.8 million in 2023 to £42.1 million in 2024. In its most up-to-date accounts, the administrators mentioned: “Given the decline in revenue, the directors do not recommend the payment of any further dividends.”
The auditor Grant Thornton warned of “material uncertainty related to going concern”, with the corporate reportedly breaching agreements with lenders.
The deadline to renegotiate the corporate’s debt pile is subsequent month, the Sun reviews. The accounting group added: “It is expected that there may be a breach [of debt covenants] again.
“Although a letter has been obtained from the bank stating their intention to continue to make all facilities available until at least 31 January 2026, no formal waiver of the covenants has been obtained.”
The firm is open and buying and selling as regular with simply 9 shops and 13 concessions throughout the UK, Ireland, and Jersey.
This comes regardless of the corporate’s high-profile followers, together with the Princess of Wales. Kate has reportedly worn 85 items from LK Bennett up to now.
According to Kate Middleton Style, the Princess has worn 19 objects of clothes, one accent, six pairs of footwear, and 7 baggage.
https://www.express.co.uk/news/uk/2152210/lk-bennett-fashion-retailer-administration