High end fashion brand LK Bennett on brink of collapse
High-end fashion chain LK Bennett is on the verge of collapse and could go into administration if a backer doesn’t step in to rescue the company.
The London-based company, whose pricey couture is popular with Duchess of Cambridge, Kate Middleton and many celebrities, has filed an intention to appoint auditor EY to handle an insolvency process, the FT reported a person with direct knowledge of the situation as saying.
The appointment would not become formal, the newspaper reported, unless new investment to keep LK Bennett afloat could not be secured.
Curse of Royal approval?
The Daily Mail reported that shoppers claimed LK Bennett’s clothes became too expensive once Kate Middleton started wearing them. Something it said marked the beginning of the end for the fashion brand.
The MailOnline also reported that founder Linda Bennet had told staff the firm was heading for administration, putting 500 jobs at risk.
LK Bennett was founded in 1990 by designer Linda Bennett, who had the vision of making expensive couture available to middle class budgets on the high street.
Last year the company reported a £5.9m loss, which it said at the time was due to a mix of weak consumer demand, restructuring costs and a weak pound in the shadow of Brexit.