The beloved British fashion brand, a favourite of Princess Kate, Queen Camilla and former Prime Minister Theresa May, has closed its stores following administration
Luxury fashion brand LK Bennett has shuttered nine stores as part of its wind-down operations, with billions of pounds owed prior to entering administration. The nine outlets had been earmarked for closure by the end of the month, though stock sold out faster than anticipated. The remaining 13 concessions are staying open while stock lasts, but are set to close imminently.
LK Bennett filed for administration in January after failing to secure a buyer. Liquidation is the legal process by which a company ceases all trading activity.
According to reports in Women’s Wear Daily, unsecured creditors face writing off approximately £34 million in losses. These unsecured creditors include suppliers, landlords and service providers.
It has been reported that secured creditors had their claims settled in full.
Around 90 jobs were affected by the closures.
The brand has since been purchased out of administration by Gordon Brothers’ brand management division in January, with the LK Bennett brand and its associated intellectual property assets acquired in the deal.
Gordon Brothers has announced plans to transition LK Bennett to an asset-light business model.
The brand was established by Linda Bennett in the 1990s, initially making its name through its footwear collection before branching out into fashion and bags.
It has long been a firm favourite of Princess Kate, Queen Camilla and former Prime Minister Theresa May. According to reports, licensing will take precedence in order to broaden the brand’s footprint in the marketplace, and should any shops be launched, Gordon Brothers will need to secure an operating partner.
“LK Bennett is a beloved heritage brand with a reputation for impeccable craftsmanship and quality, and a distinctly British spirit,” Tobias Nanda, Gordon Brothers’ head of brands, said.
“We are excite to add LK Bennett to our portfolio of brands and proud to steward the brand into the next phase of growth bringing LK Bennett’s modern luxury to both long-time followers and new customers from around the world.”
Nimit Shah, Gordon Brothers’ managing director for the EMEA (Europe, Middle East and Africa) region, said: “We believe the LK Bennett brand is capable of reinvigoration under a new asset-light model.”
