// LK Bennett will launch CVA proposals but will “secure as many jobs as possible”
// Sales are not expected to fully bounce back until mid-2021
// At least 4-5 store closures and a small number of job losses will take place
LK Bennett is reportedly preparing to launch its CVA proposals which will see five stores close down and move remaining shops to turnover-based rents.
The womenswear retailer said the proposals will result in a small number of redundancies as it attempts to “mitigate the ongoing financial impact of the Covid-19 pandemic”, Drapers reported.
LK Bennett also said eventwear and workwear, typically its “biggest strengths” as a fashion brand, have both been challenging to sell during the pandemic, as well as the lack of tourism to London, where the majority of store sales would take place.
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The embattled retailer warned that despite “best efforts” its sales are not expected to fully bounce back until mid-2021.
While it aims to secure as many jobs as possible by reaching an agreement with creditors, at least four to five store closures and a small number of job losses will take place.
LK Bennett is being advised by restructuring firm Alvarez & Marsal.
It currently employs 400 people, 300 of whom are in retail roles. It has 18 standalone stores, all of which are closed under the lockdown restrictions.
LK Bennett appointed EY as administrator of its UK business on March 7.
On April 12, Rebecca Feng, who ran LK Bennett’s Chinese franchises, bought the UK, Ireland and wholesale business of the premium womenswear retailer for £9.8 million through the company Byland UK.
Earlier this year, the administrators extended the company’s administration process for a further year.
LK Bennett said it is currently repurposing the unused space at its West End store on Brook Street into office space.