The struggling British fashion brand LK Bennett has been bought out of administration by US restructuring specialist Gordon Brothers, raising the prospect that its remaining nine UK shops could close with the loss of around 380 jobs.
Gordon Brothers, which acquired Poundland for £1 last year, confirmed it has purchased LK Bennett’s global brand and intellectual property assets for an undisclosed sum after the retailer collapsed for the second time in six years.
The Boston-based firm said the womenswear label would move to an “asset-light” model, fuelling speculation that LK Bennett could become an online-only business. The future of its physical estate and workforce remains uncertain.
Tobias Nanda, head of brands at Gordon Brothers, said LK Bennett remained a “beloved heritage brand” with strong international appeal.
“We are excited to add LK Bennett to our portfolio and proud to steward the brand into its next phase of growth, bringing its modern luxury to both long-time followers and new customers around the world,” he said.
Founded in the early 1990s by Linda Bennett with a single store in Wimbledon, LK Bennett became known for its signature shoes, handbags and occasionwear. At its peak, the brand operated more than 200 stores globally, but has since shrunk to just nine standalone UK shops and 13 concessions.
The business has struggled for more than a decade following private equity ownership. Bennett sold a majority stake to Phoenix Equity Partners in 2008 for an estimated £80m to £100m, before later returning as a consultant as profits collapsed. She bought the company back in 2017 after it posted a £48m loss.
In 2019, LK Bennett entered administration for the first time and was acquired by Rebecca Feng, its Chinese franchise partner, leading to the closure of 15 stores. More recent accounts revealed the business had recorded a £3.5m loss in 2024 and carried almost £22m of debt, prompting auditors to warn of “material uncertainty” over its future.
Nimit Shah, managing director for Europe, the Middle East and Africa at Gordon Brothers, said the firm believed LK Bennett was “capable of reinvigoration under a new asset-light model”, suggesting a sharp pivot away from the traditional high street.
The acquisition comes amid sustained pressure on the premium fashion sector, which has struggled with weaker consumer demand and rising costs. While some rivals, such as Reiss and Me+Em, have successfully adapted their offer, LK Bennett has been hampered by what analysts describe as a dated business model and slower response to changing tastes.
The wider UK retail sector has also seen a wave of restructurings. Footwear brand Russell & Bromley was bought out of administration by Next earlier this month, a deal that will result in the closure of most of its stores.
LK Bennett reported revenues of £42.1m in the year to January 2024, down from £48.8m the previous year, swinging from a £2.3m profit in 2023 to a £3.5m post-tax loss. The company employs around 380 people.
Gordon Brothers’ takeover now leaves staff and customers waiting for clarity on whether LK Bennett’s physical presence on the UK high street will survive its latest rescue.
