The British fashion brand LK Bennett, famously worn by the Princess of Wales, is teetering on the edge of collapse for the second time in just six years. The company's owner, Byland UK, has filed an application with the High Court to appoint administrators, casting a shadow over the future of its nine UK stores, 13 concessions, and approximately 280 employees.
Royal Favourite Faces Financial Crisis
Known for its elegant dresses and signature footwear, LK Bennett has long been associated with high-profile figures, including the Princess of Wales and former Prime Minister Theresa May. Despite this prestigious clientele, the company is now grappling with severe financial difficulties. According to its most recent accounts, covering trading up to the end of January 2024, the brand recorded a loss of £3.2 million and carried borrowings of almost £22 million.
A History of Insolvency and Mounting Debt
This is not the first crisis for the Wimbledon-founded retailer. It previously fell into administration in 2019 before being rescued by its Chinese franchise partner, Rebecca Feng. The current situation appears dire, with the company's auditor, Grant Thornton, highlighting a "material uncertainty related to going concern." The business has already breached agreements with its lenders and faced a crucial deadline in February to renegotiate its substantial debt pile.
Grant Thornton's report stated: "It is expected that there may be a breach [of debt covenants] again … Although a letter has been obtained from the bank stating their intention to continue to make all facilities available until at least 31 January 2026, no formal waiver of the covenants has been obtained."
What Happens Next for LK Bennett?
If administrators are appointed, it will trigger the second insolvency process for LK Bennett within a six-year period. The brand, which was established in 1990, continues to trade online and in its physical locations, offering a range of clothing, shoes, and accessories all designed in London. The company has recently emphasised sustainability through its 'LKB Conscious' collection, aiming to create "keep-forever pieces" to reduce environmental harm.
The coming weeks will be critical in determining whether this iconic British label can secure a future or join the growing list of retail casualties on the UK high street.
