New financial worries at famous retailer brings uncertainty for Harrogate shop
The Harrogate branch of a well-known fashion retailer which counts Princess Catherine among its customers faces an uncertain future as the company seeks a buyer or new investment
Fears are growing for LK Bennett after reports in the national media that the famous fashion brand had called in City advisers Alvarez & Marsal in the face of recent losses and falling sales.
The pioneering retailer, which was described as “the first British affordable luxury brand”, has been located at 47-49 James Street in Harrogate for decades.
Founded in London in 1990 by Linda Bennett, LK Bennett promised to "bring a bit of Bond Street to the high street" and, for nearly 30 years, did just that.
But, in 2008, Ms Bennett sold the upmarket fashion business for an estimated £100m to a consortium led by the private equity firm Phoenix Equity Partners.
The brand is now owned by Byland UK, a company established in 2019 for the purpose of rescuing LK Bennett from a previous brush with insolvency.
Once a global giant with 200 outlets, LK Bennett now boasts only nine shops in Great Britain, including Harrogate’s, with an additional 13 concessions areas in larger stores.
LK Bennett is not currently insolvent, but the company's owner is actively seeking a buyer due to recent financial losses, prompting speculation that it could face insolvency for the second time in six years.
The move is regarded as a contingency plan as the loss-making business seeks new funding during the Christmas trading period.