Kate favourite LK Bennett ‘is going bust’
THE Duchess of Cambridge’s favourite shop is on the brink of collapse as the crisis on the high street claims another victim.
LK Bennett is reportedly poised to call in administrators, with nearly 500 jobs at risk and 130 stores in danger of closing.
Accountant EY will oversee its insolvency unless a white knight backer is found to pump in more cash, according to Sky News.
The firm’s kitten heels and luxury handbags are popular with famous clients including Kate, who has often been pictured in its £195 high heel pumps and was seen in December wearing its Mortimer polka-dot shirt dress.
Fears for the firm’s future come as high street chains battle to survive in the face of sky-high business rates and brutal competition from online rivals such as Amazon.
Even stalwart John Lewis is struggling, with fears it may have to axe its staff bonus next week for the first time since 1953.
LK Bennett was founded by entrepreneur Linda Bennett in 1990, opening its first store in Wimbledon with a pledge that it would ‘bring a bit of Bond Street to the high street’.
In 2008, the 56-year- old made an estimated £70million by selling part of the business to outside investors.
But the firm has since plunged into the red, with a £5.9million loss for the year to July 2017.
Ms Bennett returned to the firm two years ago and invested £11.2million of her own money in a bid to save it, but does not appear to have been able to right the ship.
Richard Hyman, a retail analyst, said the market where the chain operates is now so crowded it is difficult to cope.
‘The premium end of the high street is occupied by lots of brands and it’s been clear for a while that there isn’t enough business there for all of them. LK Bennett will not be the last to fall by the wayside,’ he said. ‘I’m sure this is very difficult and painful for Linda because like most people whose name is above the door, she is very proud of the business.
‘But the market is so much more crowded now, and so much less forgiving, and there has been a bit of inevitability about this.’
Shops in all the parts of the market have been suffering. Among department stores, House of Fraser fell into administration and had to be rescued, while there are fears for the future of Debenhams.
Waitrose owner John Lewis is also in the doldrums after warning its profits will be hit, putting the much-valued staff bonus in danger.
Record store HMV, toy chain Toys ‘ R’ Us and budget retailer Poundworld have all hammered too.
And last night Better Bathrooms – which has 13 showrooms and two trade counters across the UK – entered administration.
A total of 325 employees have been made redundant at the bathroom seller.
LK Bennett did not respond to a request for comment.