LK Bennett‘s nine stores have closed, and it has shut down its website — all part of the wind-down operations of the bankrupt estate. About 90 jobs were impacted by the closures.
Unsecured creditors in the bankruptcy received just 2.65 pence per pound owed.
That kind of return means that the unsecured creditors — which range from suppliers to landlords and service providers — will have to eat up at least 34 million pounds in losses, according to filings from Companies House in the U.K. last week. Secured creditors saw their claims paid in full.
The brand management arm of Gordon Brothers in January bought the brand and its related intellectual property assets out of administration. Using the playbook that resulted in the successful turnaround of British brand Laura Ashley, Gordon Brothers said it will transition LK Bennett to an asset-light model. The new owner is already evaluating go-to-market strategies, with a priority on licensing to expand the brand’s presence in the market place. Should Gordon Brothers decide to open stores, it will also have to find 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.”
The Kate Middleton-approved footwear and fashion brand filed for administration, the U.K. equivalent of a bankruptcy in the U.S., in January after failing to find a buyer. The brand has also been favored by Queen Camilla and former U.K. Prime Minister Theresa May.
LK Bennett was founded by Linda Bennett in the 1990s. Initially known for its footwear range, the LK Bennett brand expanded to include fashion and bags. She sold a majority stake to private equity firm Phoenix Equity Partners and Sirius Equity in 2008, but then bought back her company in 2017. The retailer was most recently owned by Rebecca Feng, who operated the LK Bennett franchise in China. Feng became the owner after LK Bennett entered its first tour of administration in 2019.
High street retail giant Next plc had looked at LK Bennett as a possible acquisition, but went on to acquire bankrupt British shoe chain Russell & Bromley.
Next’s deal to acquire the Russell & Bromley included three of the footwear brand’s stores in Chelsea, Mayfair and Bluewater. The brand had operated 36 shoe stores across the U.K., along with 9 concessions. The remaining stores and concession have now been shuttered.
