LK Bennett to shut 15 stores and cut 110 jobs after sale to Chinese partner

Gift cards refunds and orders will be honoured as part of the deal

(Reuters)

LK Bennett will close 15 stores resulting in around 110 job lost after being bought out of administration by its Chinese franchise partner.

Rebecca Feng fought off competition from Sports Direct boss Mike Ashley to clinch the deal, which will save LK Bennett’s 21 remaining stores and all of its concessions. Five stores had already closed immediately following the administration with 55 jobs cut.

Gift cards refunds and orders will be honoured as part of the agreement.

Ms Feng said: “The LK Bennett brand is synonymous with quality and we believe there is a real opportunity to expand its reach in overseas markets, where significant untapped potential exists.

“Under our plan, the business will continue to operate out of the UK, looking to maintain the long-standing and undoubted heritage of the brand. This will be achieved through a combination of working with quality British design, and the business’s existing supply chain.”

Former chief executive Darren Topp and ex-finance director Andrew Ellis worked with Ms Feng on the deal and will will stay on to assist the business.

LK Bennett is famed for its popularity among high-profile women including the Duchess of Cambridge but was forced to call in administrators from EY last month after struggling financially during a difficult period for British retailers.

The company also took a hit when House of Fraser went into administration, owing it £418,000.

The LK Bennett stores to close are Bath; Belfast; Birmingham; Bridgewater, Banbridge (Northern Ireland); Royal Exchange, London; King’s Road, London; Knightsbridge, London; Long Acre, London; Northcote Road, London; Glasgow; Gloucester; St Albans; Westgate Oxford and two in York.

Founder Linda Bennett had stepped back from the brand in 2008, but returned in 2017 as a consultant. She invested £11.2m into the group upon her return to ownership but has been unable to turn its fortunes around.