NEXT circles LK Bennett as brand heads for administration
NEXT is weighing a potential cut‑price swoop for LK Bennett, as the struggling womenswear and footwear brand prepares to call in administrators.
The retail giant is understood to be among several suitors assessing a deal for LK Bennett’s brand and intellectual property assets, rather than its small remaining store estate, according to Sky News. Industry sources suggest NEXT would be unlikely to pursue any transaction involving the retailer’s physical shops, instead focusing on the brand’s licensing and digital potential.
Marks & Spencer and TFG London (the group behind Phase Eight, White Stuff and Hobbs) have also been cited by analysts as possible contenders to explore a deal.
If completed, a move for LK Bennett would closely mirror NEXT’s well‑established strategy of acquiring distressed fashion brands and rebuilding them through its platform‑led model. In recent years, NEXT has snapped up Cath Kidston, Joules and Seraphine. It is also currently exploring the purchase of Russell & Bromley.
LK Bennett filed a notice of intention to appoint administrators last week, just days after it was revealed that the company was urgently seeking a buyer to avoid collapse. The business has been working with restructuring advisers at Alvarez & Marsal in recent weeks.
Founded in 1990 by Linda Bennett, LK Bennett was once among the most recognisable names on the UK high street, at its peak operating around 200 stores across the UK and international markets including China, Russia and the US. Today, its physical footprint has dwindled to just nine standalone stores in the UK, alongside 13 concessions.
The brand is currently owned by Byland UK, a vehicle established in 2019 to rescue LK Bennett from a previous insolvency process. Byland UK was formed by Rebecca Feng, who previously ran the brand’s Chinese franchise operations.
However, recent financials highlight the challenges facing the business. Accounts for LK Bennett Fashion for the year ended 27 January 2024 show a post‑tax loss of £3.5 million on turnover of £42.1 million , down sharply from £48.8 million the year before.
NEXT is expected to reveal its latest trading figures tomorrow, with the update set to shed further light on the group’s appetite for dealmaking.
The fashion, home and beauty retailer said at the end of October it expects full price sales to grow by around 7% in the quarter to January, increasing its guidance from 4.5%. However, the group has repeatedly cautioned on the consumer backdrop, and its comments on how spending is holding up will be watched closely.
NEXT has been approached for comment.
