Fashion brand LK Bennett on brink of collapse for second time putting upto 280 jobs at risk

The 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 the business submitted papers to the High Court on Tuesday, signalling that efforts to secure fresh funding or a buyer may have failed. The move puts around 280 jobs at risk across the group.

Founded in 1990 by Linda Bennett, LK Bennett became synonymous with polished British style and built a loyal following that included senior politicians and members of the royal family. However, the brand has struggled to regain financial stability since its first insolvency in 2019.

In its previous collapse, LK Bennett fell into administration after failing to secure new investment and was subsequently acquired out of insolvency by its Chinese franchise partner, Rebecca Feng. That deal followed a competitive process in which she beat rival interest from Mike Ashley, founder of Sports Direct.

Despite the rescue, the retailer has continued to face mounting pressure from rising costs, weak discretionary spending and structural changes in the fashion sector.

The business currently lists just nine standalone UK stores, alongside 13 concessions across the UK, Ireland and Jersey, reflecting a significantly reduced physical footprint.

According to LK Bennett’s most recent accounts, covering trading up to the end of January 2024, the company reported losses of £3.2 million and borrowings of almost £22 million.

Auditors Grant Thornton raised a red flag over the company’s future, warning of a “material uncertainty related to going concern”. The accounts disclosed 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 indicating an intention to continue providing facilities until at least January 2026, it also confirmed that no formal covenant waiver had been secured, leaving the business exposed.

The fate of LK Bennett has been closely watched across the fashion industry in the run-up to Christmas, with hopes that seasonal trading might stabilise cash flow or attract a buyer. The decision to seek administrators suggests those efforts have not delivered the turnaround required.

If administrators are formally appointed, it will mark another high-profile casualty on the UK high street as fashion brands continue to struggle with subdued consumer demand, rising rents, wage costs and the shift towards online shopping.

LK Bennett has been approached for comment.