// LK Bennett CVA approved by creditors
// The womenswear retailer said the CVA will result in small number of redundancies
// LK Bennett will shut 5 stores and switch the remaining stores to turnover-based rent
LK Bennett’s CVA has been approved by its creditors, which will result in five store closures and the remaining shops switching to turnover-based rent.
In August, LK Bennett restructured its store teams, resulting in 19 redundancies.
Last month, LK Bennett was preparing to launch its CVA proposals.
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”.
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.
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 appointed EY as administrator of its UK business on March 7.