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LK Bennett gets ready for entering administration

By Angela Gonzalez-Rodriguez

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Business

New York –The UK’s fashion and accessories brand, is getting ready to appoint administrators in an attempt to keep creditors at bay while it gets some breathing air.

Founded by British entrepreneur Linda Bennett in 1990, who regained full control of the business last year from private equity investors, LK Bennett was reported to have started the year by calling in advisers to look at restructuring options. These options included a potential sale, according to sources close to the matter cited by ‘The Guardian’.

Reports broke Friday that the retailer has filed a notice of intention to appoint an administrator. This court document provides management with some time to maneuver as it finds ways to prevent creditors from calling in their debts.

EY will walk in as administrators to oversee insolvency if no new investment is secured

The most recent accounts filed at Companies House show the business made an operating loss of 5.9 million pounds in the year to July, 29 2017. Pre-tax losses skyrocketed to 48.3 million pounds, driven by a corporate restructuring that involved writing off amounts owed by former group companies, highlighted the ‘Financial Times’.

As reported by ‘Sky News’, advisory firm Ernst & Young (EY), the advisory firm, will oversee the insolvency if no new investment can be found in the coming days, according to Sky News.

LK Bennett’s founder sold her majority stake in the company to private equity firm Phoenix Equity Partners in 2008. In 2017 she returned to advise the business after the retailer started to struggle, buying the company back soon after. The accounts show that on her return, Bennett invested about 11.2 million pounds into the business she created.

The retailer, which has 41 outlets in the UK and 52 overseas in countries including China, Russia, and the US, employs 480 people in the UK.

Image: LK Bennett UK web

LK Bennet