British fashion retailer Next is considering a cut-price approach for the brand and intellectual property of struggling womenswear label LK Bennett, reported Sky News.
The news comes as LK Bennett edges closer to appointing administrators.
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Retail industry sources said the group is one of several interested parties assessing a potential acquisition, although it is not expected to pursue a deal that includes LK Bennett’s remaining physical store network.
Other names cited by Sky News’ analysts as possible bidders include Marks & Spencer and TFG London, which owns Phase Eight, White Stuff and Hobbs.
Next refused to comment on the news, and a Marks & Spencer representative said the group is not looking to acquire LK Bennett.
Any move by Next would be consistent with its recent focus on buying distressed brands.
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By GlobalDataThe retailer has previously acquired Cath Kidston, Joules and Seraphine, and is currently reviewing a possible purchase of family-owned footwear business Russell & Bromley.
LK Bennett filed a notice of intention to appoint administrators earlier this week.
In recent weeks, the company has been advised by restructuring specialists at Alvarez & Marsal.
The brand was founded in 1990 by Linda Bennett and, at its peak, operated nearly 200 stores across the UK and international markets, including China, Russia, and the US.
Its current UK footprint has reduced to nine standalone shops, alongside 13 concessions listed online.
Ownership of the label sits with Byland UK, a vehicle created in 2019 to save LK Bennett from a previous insolvency.
Byland UK was established by Rebecca Feng, who had previously overseen the brand’s franchise operations in China.
Financial accounts for LK Bennett for the year ended 27 January 2024 show a post-tax loss of £3.5m ($4.7m) on turnover of £42.1m, compared with revenues of £48.8m the year before.
Linda Bennett sold the company in 2008 for an estimated £100m to a consortium led by Phoenix Equity Partners, before buying it back in 2017.
A subsequent administration process in 2019 resulted in the closure of 15 stores.
