Luxury footwear and fashion chain, LK Bennett, recently made headlines with its announcement of administration filing due to cash flow difficulties. The company’s inability to secure new investors has put 500 jobs at risk, although most of its stores are still open for business. However, their webstore is currently on hold.
EY, an accountancy firm, is managing the administration process, which has already resulted in the closure of five stores and the layoff of 55 employees. The closures were attributed to challenging trading conditions, rising rent, and business rates. Despite these setbacks, joint administrator Dan Hurd remains optimistic about the brand’s future, pointing out the positive reception of its recent collections.
LK Bennett, founded by Linda Bennett, has struggled in recent years, prompting her return to the company as a consultant. Despite her efforts to revitalize the business, the tough retail environment has made it challenging to attract new investors. Moving forward, going through the administration process could offer LK Bennett a clean slate, free from underperforming stores and debts, and potentially attract potential buyers.
The company’s international retail operations, which include approximately 200 locations worldwide, are under scrutiny as the search for interested buyers continues. While the future of LK Bennett hangs in the balance, there is still hope for the brand to find new investors and solidify its position in the competitive fashion industry.
Learn more about LK Bennett’s story at official website and read about the latest updates on the administration process at BBC News.
