LK Bennett, the renowned brand known for its women’s clothing and shoes, will continue its administration process for another year. This decision was approved by the company’s creditors and is primarily due to unresolved property matters and the need to finalize trading liabilities and make further payments to creditors. Back in March 2019, LK Bennett faced financial difficulties and fell into administration. It was later acquired by Rebecca Feng, who is the UK head of its Chinese franchise partner.
Originally, the administration process was set to conclude on March 7 of this year. However, with the approval of secured creditors, the deadline has been extended until March 7, 2021. Wells Fargo, the main secured lender, will be fully repaid, and although preferential creditors did not receive any distributions between September 7 and March 6, they can expect a notice of intended dividend in the near future. On the other hand, non-preferential unsecured creditors are less likely to receive the full amount owed to them. Accounting firm EY estimates that non-preferential claims may amount to approximately £29.3 million, and claims from unsecured creditors are still being submitted. An estimated £600,000 is set to be allocated for distribution among the unsecured creditors in accordance with insolvency legislation.
LK Bennett rose to fame as a favored clothing and shoe brand of Kate Middleton, the Duchess of Cambridge. The company was initially established over three decades ago in Wimbledon Village, starting as a single shop. Linda Bennett, the founder, sold a majority stake to Phoenix Equity Partners in 2008 but remained involved in the business until that point. She later repurchased the company in 2017 but was unable to rescue it from its financial struggles, ultimately leading to its collapse in 2019.
For more information on LK Bennett’s administration process and its impact on the fashion industry, you can refer to the following links: