LK Bennett has cut ties with advisers AlixPartners, weeks after the retailer drafted the restructuring firm in to consider options for the business, Drapers can reveal.
Linda Bennett appointed AlixPartners to undergo a strategic review of the fashion retailer she founded in 1990, with the possibility of lining up a sale later this year.
It is understood that AlixPartners was in the process of putting together a restructuring plan for the retailer. However, LK Bennett has told Drapers that it is no longer engaged with the consulting firm.
Drapers understands the British brand is currently working with a fleet of advisers to consider all restructuring options.
One property source close to the situation said: “LK Bennett has been mentioned under our watch list. If LK Bennett is having meetings with advisers, then it will either be looking for a CVA [company voluntary agreement] or a pre-pack administration. The company has to be unprofitable to ask for a CVA.”
Drapers understands an investor is also an option.
LK Bennett’s most recent results, for the year to 31 July 2017, showed an operating loss of £5.9m.
Bennett increased her investment in the company to buy out the remaining equity from private equity owner Phoenix Equity Partners in September 2017.
The deal was made for an undisclosed sum.