The British high street could be set for another major retail reshuffle, as FTSE-100 behemoth Next is weighing a cut-price offer for the struggling fashion chain LK Bennett. Sky News understands that Next is among a pack of suitors considering a move for the brand, which is teetering on the brink of collapse and preparing to call in administrators.
The Contenders for a Failing Brand
According to retail industry insiders, Next is primarily interested in acquiring LK Bennett's brand name and other intellectual property assets. It is considered unlikely that Next would pursue a deal involving the retailer's small remaining estate of physical shops. The potential move mirrors Next's established strategy of acquiring distressed brands, having previously bought Cath Kidston, Joules, and maternitywear retailer Seraphine. Next is also currently examining a purchase of family-owned footwear chain Russell & Bromley.
Analysts have tipped other major players as potential contenders, including Marks & Spencer and TFG London—the group that owns Phase Eight, White Stuff, and Hobbs. However, an M&S spokeswoman has since stated the company is not considering a bid for LK Bennett.
A Royal Favourite's Steep Decline
The news follows LK Bennett's filing of a notice of intention to appoint administrators earlier this week, just ten days after Sky News revealed the company was urgently seeking a buyer to avert collapse. Founded by Linda Bennett in 1990 with a store in Wimbledon, the brand promised to "bring a bit of Bond Street to the high street." It grew to become one of the most recognisable names on the UK high street, at one point operating 200 branded outlets in the UK and overseas, including in China, Russia, and the US.
Renowned for its designs, particularly its kitten heels, LK Bennett became a favourite of high-profile figures including the Princess of Wales and former Prime Minister Theresa May. However, its fortunes have dramatically reversed. In the UK, it now trades from just nine standalone stores and 13 concessions.
The brand's current owner is Byland UK, a company established in 2019 by Rebecca Feng—who previously ran LK Bennett's Chinese franchises—specifically to rescue it from an earlier insolvency threat. The most recent company accounts for LK Bennett Fashion, covering the period to 27 January 2024, reveal a stark picture: a post-tax loss of £3.5 million on a turnover of £42.1 million, with sales having fallen steeply from £48.8 million the previous year.
What Happens Next?
The potential acquisition by Next represents a critical juncture for the LK Bennett brand. If a deal for the intellectual property proceeds, it could see the label survive, likely through Next's powerful online and wholesale channels, but almost certainly with further reductions to its physical store presence. The brand has been working with advisers from Alvarez & Marsal in recent weeks to navigate the crisis.
This situation marks the second time in five years that LK Bennett has faced administration, with the 2019 episode resulting in the closure of 15 stores. The outcome of the current negotiations will determine whether this iconic British fashion name can be revived once more or will succumb to the intense pressures facing the retail sector. Next has declined to comment on the speculation.
