Princess Kate'S Favorite Shoe Brand LK Bennett Can'T Escape Bankruptcy.

LK Bennett Ltd., the UK's high-end shoe apparel retailer, has filed for bankruptcy protection after the failure of its financing. The LK Bennett, beloved by the Duchess of Cambridge Kate Middleton, Kate, has become another British brand that has been shrouded in the curse of the princess.

LK Bennett Ltd. was detonating two weeks ago to seek new financial support through restructuring AlixPartners LLP. Last Friday, Sky News disclosed that the brand had submitted a notice indicating the intention of appointing the insolvency administrator and formally declared bankruptcy on Thursday.

LK Bennett Ltd. was founded in 1990 by Linda Bennett at the first store in Wimbledon, London. In 2008, Linda Bennett sold 70% of its brand to Phoenix Equity Partners and Sirius Equity Partners for 70 million pounds. After the company got into trouble, she returned in 2017 as a consultant, and finally repurchased the holdings of two private Holdings Company in September.

Since its return, Linda Bennett has already lent more than 11 million 200 thousand pounds to the company. In 2017, Wells Fargo & Co., the Wells Fargo Capital Finance and Wells Fargo capital financial company, also granted the asset mortgage loan, is also the main creditor of LK Bennett Ltd..

In an email sent to company employees last Friday, Linda Bennett said he had done his best. Let the brand get the success it deserves, but now the situation is "difficult and unstable", and the management is making every effort to find the best way. "Everyone is hopeful of introducing new investors," the Financial Times quoted people familiar with the matter. According to the source of the daily mail, it is almost certain that the brand will shut down its 10-20 stores to survive for a long time even if there is a plate trader.

Now LK Bennett Ltd. has 39 separate stores and 37 department store counters in the UK, employing 480 employees, and 47 stores and counters in the US and continental Europe.

The bankruptcy administrator, EY Ernst & young, said that 5 stores in the UK would be closed immediately, while 55 employees would be disbanded while other sales outlets would continue to operate while the company was looking for buyers, while online sales would be suspended. International business is not within the scope of bankruptcy management.

LK Bennett Ltd.'s joint manager Dan Hurd said: "the selling process has started." The market is estimated to have the largest sporting goods retailer in the UK, Sports Direct International PLC (SPD.L) and House of Fraser department store, and frequent retail tycoons such as Mike Ashley Mike Ashley, high street brand Fraser parent company, Harris, chairman of Mao and Harris, former chairman of the British Fashion Association, are likely to compete.

According to the latest earnings report, LK Bennett Ltd. achieved sales of 77 million 400 thousand pounds in the fiscal year ending July 29, 2017, down 1.8% from the same period last year, and recorded a pre tax loss of 48 million pounds due to goodwill impairment and business restructuring, operating losses of 5 million 900 thousand pounds, while operating profit of 100 thousand pounds a year ago.

LK Bennett's high-heeled shoes and dresses are commonly seen in the public form of Princess Kate and British Prime Minister Theresa May Wen TSE Shan. But many consumers complain that since the brand has become a frequent wardrobe for Kate's wardrobe, the LK Bennett signboard has a starting price of 195 with high-heeled shoes, and the most expensive fur coats retail price is up to 1495 pounds, while most of the dress is priced at 295 pounds or more.

Catherine Shuttleworth, chief executive of Savvy Marketing, a consumer marketing consultant, points out that such a price is certainly wet to the Duchess of Cambridge, but "most British women have to think twice about spending 200 pounds on a skirt, let alone 300 pounds". Glen Tooke, a consumer research analyst at Kantar Worldpanel, a market research firm, argues that the problem with the brand is that its target audience is not clear. Linda Bennett, known as Britain's "Queen of Kitten-Heel (Queen of cat and shoe)", has said it wants to bring some "Bond Street luxury to the high street" through LK Bennett. However, it is clear that high street customers have no fortune to enjoy the price of Bond Street.

During last year's visit, Linda Bennett pointed out that the United Kingdom had created a huge problem without Europe, not only the "unprecedented exchange rate (pound depreciation)", but also the possibility that Spain's shoes would enter the British market. "From a business point of view, this is a complete nightmare," she told reporters.

At the same time, a shift in consumer habits and a series of heavy costs, including business tax and rising rent, have made real retailers heavy. Before LK Bennett Ltd., Princess Kate's favorite designer brand Issa, the brand of the blue skirt announced when she was engaged, and Orla Kiely almost collapsed. Two.

Dan Hurd pointed out that in the extremely difficult business environment for retailers, the company was further affected by the increase in store rents and the increase in business tax rates. On the other hand, House of Fraser Ltd., a bankruptcy department store last year, also defaulted 418 thousand of the company.

Claire Shields, a brand expert, points out that the Kate effect and even the popularity of celebrities are both good and bad for retailers. Taking Kate's case as an example, her personal demonstration will undoubtedly boost sales significantly. On the other hand, she has a good habit of wearing old clothes, and every time she wears the old money to stimulate brand demand, the cost of developing the old brand in a timely manner is enormous.