Luxuary fashion brand LK Bennett has closed all nine of its UK stores as part of wind-down operations, while billions of pounds was owed before administration. The nine stores were earmarked for closure by the end of the month. However, stock sold quicker than expected. The 13 concessions remain open while stock lasts, but will shut soon.
LK Bennett filed for administration in January after failing to find a buyer. Liquidation is the legal procedure through which a company ceases trading.
It has been reported that unsecured creditors will have to write-off about 34 million pounds in losses, Women’s Wear Daily reported. Unsecured creditors include suppliers, landlords and service providers.
It has been reported that secured creditors saw their claims paid in full.
About 90 jobs were impacted by the closures.
The brand was recently bought out of administration.
Gordon Brothers’s brand management arm bought the company in January. It is understoond that the LK Bennett brand and its related intellectual property assets were bought out of administration.
Gordon Brothers said it will transition LK Bennett to an asset-light model.
The brand was founded by Linda Bennett in the 1990s.
It was initially known for its footwear range but expanded to include fashion and bags.
It has been a favourite of Priness Kate, Queen Camilla and former UK Prime Minister Theresa May.
Priority will be placed on licensing to expand the brand’s presence in the market place and if stores are opened, Gordon Brothers will have to find an operating partner, it has been reported.
“LK Bennett is a beloved heritage brand with a reputation for impeccable craftsmanship and quality, and a distinctly British spirit,” Tobias Nanda, Gordon Brothers’ head of brands, said.
“We are excite to add LK Bennett to our portfolio of brands and proud to steward the brand into the next phase of growth bringing LK Bennett’s modern luxury to both long-time followers and new customers from around the world.”
Nimit Shah, Gordon Brothers’ managing director for the EMEA (Europe, Middle East and Africa) region, said: “We believe the LK Bennett brand is capable of reinvigoration under a new asset-light model.”