Investment firm Gordon Brothers has purchased the British fashion house LK Bennett out of administration. This deal follows the brand’s second collapse in six years and adds to a growing list of high-street names facing insolvency in early 2026. While Gordon Brothers famously bought Poundland for just £1 last year, this latest acquisition focuses on moving the luxury label toward a digital-first, low-cost operating model.
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Distressed Brand Experts Take Control
Gordon Brothers specializes in buying famous brands that have run out of money. They follow a very specific playbook: instead of trying to run a traditional chain of stores, they turn the brand into a licensing business. This is the same method they used to fix Laura Ashley, which now makes most of its money from royalties rather than selling items directly in its own shops.
Tobias Nanda, the head of brands at Gordon Brothers, describes LK Bennett as a “beloved heritage brand” with a strong British identity. The firm hopes to make the brand profitable again without the high overhead of the London high street; they plan to achieve this by moving away from vertical operations where a company owns the inventory, the factories, and the stores.
UK Retailers Face Difficult Economic Climate
The collapse of LK Bennett is part of a wider trend of retail failures in January 2026. High operating costs and low shopper confidence after the Christmas season have forced several established names into insolvency.
- Claire’s Accessories entered administration on January 26, putting 1,000 jobs at risk.
- The Original Factory Shop (TOFS) also collapsed this month after rescue attempts failed.
- Russell & Bromley was recently bought by Next Plc (GB:NXT) in a pre-pack deal that saved only three of its 36 stores.
These companies have all struggled with a perfect storm of rising rents, inflation, and government tax policies that have made it nearly impossible for traditional stores to make a profit.
LK Bennett Shrinks from High Street Peak
Founded in 1990 by Linda Bennett, the brand was once a major force in British fashion with nearly 200 locations worldwide. It gained fame for its “Bond Street” style and became a favorite of the Princess of Wales. However, the business has steadily declined over the last decade.
Before this latest sale, the brand had already shrunk to just nine standalone stores and 13 concessions. Financial records for the year ending in early 2024 showed a loss of £3.5 million, as sales dropped significantly from the previous year. Auditors had warned that the company’s heavy debts and falling revenue created “material uncertainty” about whether it could survive.
Key Takeaway
In simple terms, LK Bennett is being transformed from a shop into a name on a label. While it is sad to see another iconic British brand disappear from the high street, this move might be the only way for the brand to stay alive in a world where it is too expensive to run a physical store. For fans of the brand, you will likely still be able to buy their shoes and dresses online or in other department stores, but the days of visiting a dedicated LK Bennett boutique are largely coming to an end.
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