Fashion retailer LK Bennett goes into administration

High-end fashion retailer LK Bennett has collapsed into administration on Thursday, putting 500 jobs at risk.

The business said last week it was having difficulties and was eyeing EY as a possible administrator if it could not secure new financing.

The chain, which has 39 shops in the UK, shut 5 stores in Sheffield, Bristol, Liverpool and two in London and EY said that 55 jobs would go from the firm’s headquarters as a result of the closure.

Joint administrator Dan Hurd said amid "tough trading conditions for retailers, LK Bennett had been further impacted by significant rent increases and business rate rises.

"Linda Bennett and the management team therefore made the difficult decision to place the company into administration, to protect the future of the business."

Hurd added: "LK Bennett is a strong luxury UK brand, the new season collection was critically acclaimed, and recent trading is up, which we hope will be attractive to prospective buyers."

Although shops will continue to function normally for now, the website will no longer be taking orders.

According to Sky News, Bennett drafted in consultancy firm AlixPartners to weigh up the firm’s future options. Sources told Sky News that there was a realistic prospect of selling a part of her stake in the retailer to an outside investor.