Princess Kate approved brand stares down second crisis in six years

Princess Kate’s go-to fashion favourite is facing an uncertain future.

LK Bennett, the polished British label long associated with the Princess of Wales’ elegant royal wardrobe, has filed paperwork at the High Court signalling its intention to appoint administrators. 

The move lodged on Tuesday has sparked fresh concern for the upmarket retailer and marks the second time in just six years that the brand has teetered on the brink.

Court filings indicate the company could soon enter administration if a rescue deal is not secured. 

The retailer, which employs close to 300 staff and is best known for its tailored dresses, court shoes and timeless heels, has struggled amid declining sales and a tough trading environment for high-street fashion.

Owned by Chinese-backed firm Byland UK, LK Bennett has enjoyed global visibility thanks in no small part to Kate, who has worn the brand on official engagements. 

Her endorsement once helped turn the label into a sell-out success story, with “Kate effect” spikes regularly crashing the retailer’s website.

But behind the scenes, the numbers tell a more sobering story. The company’s latest financial accounts, covering the year to January 2024, revealed post-tax losses of £3.5 million, alongside a dramatic revenue drop of nearly £50 million compared with the previous year.

This isn’t LK Bennett’s first brush with collapse. In 2019, the brand fell into administration after failing to secure fresh investment amid rising business rates and mounting costs. 

Five stores closed immediately, with another ten shutting their doors in the months that followed, leading to job losses across both retail outlets and head office.

At the time, administrators EY said management had made the “difficult decision” in an effort to preserve what remained of the business.

The label was later rescued by Rebecca Feng, who had previously run LK Bennett’s franchise operations in China. 

Through her company, Byland UK, she bought the business out of administration and attempted to steer it back to stability.

Now, with inflation squeezing consumers, footfall falling on the high street and competition fierce from online rivals, the brand is once again searching for a lifeline.