LK Bennett close to collapse as it prepares administration filing

It looks like LK Bennett might be the first 2026 casualty of the tough retail environment in the UK with the premium fashion and footwear chain having filed an intention to appoint administrators.

It would be the second time in six years that the company has failed with the notice having been submitted at the High Court on Tuesday.

If the application is granted, it’s likely that the company will go into administration.

The news comes in the wake of reports just before Christmas that it was working with Alvarez & Marsal and looking for an 11th-hour rescue deal due to very weak trading in recent periods. 

However, in such circumstances potential buyers often prefer to wait for a business to go into administration. Buying it after such a filing usually gives them an easier ride than taking it on as a going concern with all the obligations (such as leases) that come with it.

If it does go into administration, it’s likely that there will be no shortage of interested parties. The company, which employs around 280 people, is currently owned by China’s Byland UK and it’s not uncommon for existing owners to buy back a business out of administration.

But there will also be other possible bidders with deep pockets. When it originally went into administration there were reports that Frasers Group was interested and that company remains a big buyer of distressed businesses. Other big UK retail names that have bought a number of companies include Next (owner of premium brand Reiss) and M&S (which bought another premium label, Jaeger). Plus there are private equity companies that could also be looking at it.

And it’s an attractive proposition on some levels. Despite its relatively small size compared to some of the giants of UK fashion retail, 35-year-old LK Bennett has a strong name and a high profile given its popularity with major fashion influencers including the Princess of Wales. It could succeed as part of a larger operation.

The company had gone into administration in 2019 as it struggled with rising business rates but failed to find fresh funding. It closed a number of stores at the time and laid off HQ staff as well as those in the affected stores.

Rebecca Feng, who ran its franchises in China, acquired it via Byland and in the early days, that acquisition looked to be successful. It expanded its categories with an entry into the bridal sector and opened new stores in key premium locations. In 2022 it moved its London flagship and its HQ to Bond Street. It also reported a return to profit as sales recovered. 

In the following year it became an official Ascot sponsor and in the 12 months up to early 2023 its sales jumped as event dressing made a comeback after the pandemic. It also launched important initiatives on conversion and loyalty as well as sustainability, and in 2024 launched on the M&S webstore. That year also saw it opening a new Knightsbridge flagship in London. 

But in early 2025 its latest set of accounts showed the company enduring falling sales, contracting margins and a swing to a loss.

Business conditions during the rest of 2025 clearly didn’t improve as those recent reports of it seeking a sale underlined. As well as sluggish consumer confidence, it battled higher costs following National Insurance and minimum wage increases.

It currently has only nine standalone stores and 13 concessions in the UK and Ireland.