Frances Ball 8 Mar 2019 12:48pm

EY to handle insolvency at LK Bennett

Upmarket fashion retailer LK Bennett, known for clothing fashion editors and corporate executives alike, has collapsed into administration

The luxury fashion chain employs 500 people in the UK. EY has already made 55 redundancies, and has announced the closure of five stores.

Linda Bennett founded LK Bennett in 1990. Bennett sold her controlling stake in 2008 but brought the business back under her control again in 2017.

EY said it hoped that it would be able to secure at least a partial sale of the company.

Dan Hurd, joint administrator, said, “Amidst tough trading conditions for retailers, the company has been further impacted by significant rent increases and business rate rises. Linda and the management team therefore made the difficult decision to place the company into administration, to protect the future of the business.”

He added that prospective buyers might be attracted to the brand, given that “the new season collection was critically acclaimed, and recent trading is up”.