Friday 15 February 2019 3:30 pm

LK Bennett founder weighs up future options


Reporter covering retail and property. Email stories to seb.mccarthy@cityam.com

Reporter covering retail and property. Email stories to seb.mccarthy@cityam.com

Follow Sebastian McCarthy
Upmarket women’s footwear retailer LK Bennett has reportedly hired advisers to conduct a strategic review of the business, in a move that could potentially lead to the firm being sold.

Founder Linda Bennett, who bought back the business in 2017, has drafted in consultancy firm AlixPartners to weigh up the firm’s future options, according to Sky News.

While a deal is not certain to take place, sources told Sky News that there was a realistic prospect of Bennett selling a part of her stake in the retailer to an outside investor.

The brand, which has been favoured by the Duchess of Cambridge and has become well-known for its kitten heels, was opened almost three decades ago when Bennett established its first store.

In 2008 Bennett sold a majority stake in the firm for between £80m and £100m, before buying back the 45 per cent of equity that she did not already own from Phoenix Equity Partners in 2017.

Last summer it emerged that LK Bennett had made an operating loss of nearly £6m in the 12 months to July 2017, and its current efforts to review the business comes amid a swathe of challenges facing Britain’s retailers.

Read more: High street shops lie empty ahead of spring reckoning

Retailers on Britain's high streets have faced increasing pressures in recent years over rising costs and more competition from online rivals, with a number of major outlets falling into administration in the wake of tumbling profits.

LK Bennett and AlixPartners have not responded to a request for comment.

Share


Tags: