Upmarket fashion retailer LK Bennett is on the brink of collapse for the second time in six years after filing an application to appoint administrators.
Court filings show papers submitted to the High Court by the business on Tuesday indicate efforts to secure new funding or a buyer may fail. The move puts around 280 jobs at risk across the group.
Founded by Linda Bennett in 1990, LK Bennett has become synonymous with sophisticated British style and has built a loyal following that includes senior politicians and members of the royal family. However, the brand has struggled to regain financial stability since its first bankruptcy in 2019.
Last fall, LK Bennett fell into administration after failing to secure new investment and was later bought out of bankruptcy by its Chinese franchise partner, Rebecca Feng. That deal followed a competitive process in which they beat off rival interest from Sports Direct founder Mike Ashley.
Despite the rescue, the retailer faces increasing pressure from rising costs, weak discretionary spending and structural changes in the fashion sector.
The business currently has only nine standalone UK stores listed, as well as 13 concessions in the UK, Ireland and Jersey, reflecting a significantly reduced physical presence.
According to LK Bennett's most recent accounts, covering trading to the end of January 2024, the company reported losses of £3.2 million and borrowings of almost £22 million.
Auditor Grant Thornton raised a red flag on the company's future, warning of “material uncertainty relating to the going concern”. The accounts revealed that LK Bennett had breached agreements with its lenders and faced a deadline to renegotiate its debt facilities.
While the auditor noted that the company had received a letter from its bank stating its intention to continue providing facilities until at least January 2026, she also confirmed that no formal contract waiver had been secured, leaving the business exposed.
LK Bennett's fortunes are being closely watched across the fashion industry ahead of Christmas, with hopes that seasonal trading can stabilize cash flow or attract buyers. The decision to seek administrators shows that those efforts have not produced the desired change.
If administrators are formally appointed, it would mark another high-profile crash on the UK high street as fashion brands struggle to cope with a slump in consumer demand, rising rents, wage costs and the shift towards online shopping.
LK Bennett has been contacted for comment.