LK Bennett sold to a Chinese partner but 15 stores will close | Business

LK Bennett was bought out of the administration by her Chinese franchise partner, Rebecca Feng, who fought competition from Mike Ashley of Sports Direct.

The agreement saves 21 stores, all of the group's concessions and 325 jobs, but 15 LK Bennett stores are about to close, resulting in the loss of 110 jobs. All gift cards, refunds and orders will be honored as part of the transaction.

The high-end retailer, founded by Linda Bennett, who opened its first store in 1990, closed five stores last month after calling EY's directors.

A new company called Byland, backed by Feng, bought the UK business, which has about 40 stores and employs 500 people. The group's international activities were not part of the deal, but the trade journal Drapers, which for the first time announced the rescue deal, said Feng hoped to secure LK Bennett's stores in Europe and the United States. United.

Feng said, "The LK Bennett brand is synonymous with quality and we believe that there is a real opportunity to extend its reach to foreign markets, where a significant untapped potential exists. As part of our plan, the company will continue to operate from the UK, with the goal of preserving the brand's long-standing and undeniable heritage. "

Former General Manager, Darren Topp, and former CFO, Andrew Ellis, will work with Byland as part of the deal.

Dan Hurd, co-director, said: "With an established British luxury brand, the company has received offers from a number of parties."

LK Bennett experienced financial difficulties despite her popularity with notable women, including the Duchess of Cambridge and Theresa May, who wore a blue dress of the chain for a photo shoot in the American edition of Vogue.

The case was also affected when House of Fraser entered the administration. The department store owed £ 418,000 to LK Bennett at the time of its collapse and closed its dealerships after the acquisition by Ashley's Sports Direct.

Ashley and the owner of the Dune shoe chain were in the running to buy LK Bennett but the boss of Sports Direct retired in part because of his interest in the battle for Debenhams.

The LK Bennett stores to be closed are Bath; Belfast; Birmingham; Bridgewater, Banbridge (Northern Ireland); Royal Exchange, London; King's Road, London; Knightsbridge, London; Long Acre, London; Northcote Road, London; Glasgow; Gloucester; St Albans; Westgate Oxford and two in York.