LK Bennett, the upmarket fashion retailer renowned for dressing the Princess of Wales, has lodged paperwork at the High Court signalling its intention to bring in administrators.
Court records show the notice was submitted on Tuesday, raising serious questions about the future of the British brand for the second time in six years.
The luxury chain, which counts nearly 300 employees, is owned by Chinese-backed Byland UK. Kate, has frequently been photographed wearing the label’s distinctive dresses and footwear during official royal duties.
Should the court approve the application, the company would likely enter administration, following a period of declining trade that prompted urgent efforts to secure a last-minute buyer.
LK Bennett has filed for administration
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The retailer previously fell into administration in 2019 when its then-owners were unable to secure fresh capital amid mounting business rates pressures.
Five outlets closed immediately, with another ten shutting in subsequent months, while staff at both retail locations and headquarters lost their jobs.
Administrator EY stated at the time that management had taken the “difficult decision” to place the company into administration in order to safeguard its future.
Rebecca Feng, who had operated LK Bennett’s franchise business in China, stepped in to rescue the brand through her company Byland UK, purchasing it out of administration and giving the struggling retailer a second chance.
The company’s most recent financial accounts, covering the period to January 2024, revealed post-tax losses of £3.5million alongside a steep drop in revenue of almost £50m compared with the prior year.
The Princess of Wales has worn LK Bennett clothing on a number of key occasions
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LK Bennett currently operates nine standalone shops and maintains 13 concessions within department stores across the UK, Ireland and Jersey.
In the weeks leading up to Christmas, the retailer had been collaborating with restructuring specialists Alvarez & Marsal on an accelerated process to find a buyer, according to Sky News.
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Those efforts came as trading conditions deteriorated, prompting the race to stitch together a rescue package before this week’s court filing.
Linda Bennett established the brand in 1990 with an ambition to deliver “a bit of Bond Street to the high street”. She parted with the business in 2008, selling it to Phoenix Equity Partners and Sirius Equity for a reported £100m while keeping a stake in the company.
This is the second time in six years the company has applied for administration
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Ms Bennett returned in a consultancy role in 2017 before subsequently buying back the controlling interest from Phoenix and injecting more than £11m of her own money into the enterprise.
The fashion sector has faced significant headwinds this year, with retailers contending with Labour’s tax measures including a £25b increase in National Insurance contributions that employers must pay on staff wages.