Business

Two LK Bennett stores in the north to close as part of sale to new owner

LK Bennett is to close its two Northern Ireland stores. Pictured is the Victoria Square outlet
LK Bennett is to close its two Northern Ireland stores. Pictured is the Victoria Square outlet LK Bennett is to close its two Northern Ireland stores. Pictured is the Victoria Square outlet

WOMEN's fashion retailer LK Bennett is to close its two stores in Northern Ireland after the brand was bought out of administration.

LK Bennett has announced its outlets in Belfast's Victoria Square and The Boulevard in Banbridge are among 15 to close in the UK, at a overall cost of around 110 jobs.

LK Bennett's two stores in the Republic at Dundrum Town Centre and Kildare Village, as well as six concessions will remain open.

The 15 stores earmarked for closure were not included as part of the fashion brand's sale to newly created company, Byland UK Limited.

Rebecca Feng, who runs the brand's Chinese franchises and is behind Byland, said the changes will help ensure the long-term future of the business.

"Under our plan, the business will continue to operate out of the UK, looking to maintain the long-standing and undoubted heritage of the brand. This will be achieved through a combination of working with quality British design, and the business's existing supply chain," she said.

Ms Feng has worked on the deal with Darren Topp and Andrew Ellis, LK Bennett's former chief executive and finance director. Both will stay on after the deal to assist the business.

LK Bennett called in administrators from EY last month amidst tough trading conditions for retailers and significant rent increases and business rate rises.

Some 55 jobs have already been cut after five stores closed immediately following the administration, while staff numbers at the company's head office were reduced.

EY has said it is providing support to the staff members affected in the wake of the latest round of closures, including those in the north, who total around 15 people.

Aodhán Connolly, director of the Northern Ireland Retail Consortium said it is a tough time for retailers across the board, leaving them facing a "perfect storm".

"Uncertainty around Brexit has stopped investment, made it harder for our supply chain and most of all it has knocked consumer confidence, meaning people just aren't spending the way that they were," he said.

"As well as that we have the domestic problems of business rates. We have an outdated system that is not fit for purpose and in some places we have people who are paying more in their rates than they are in their rent. Until that system is fixed we are going to see more closures, we are going to see more job losses."

Before the administration, LK Bennett was owned by founder Linda Bennett, who had stepped back from the brand in 2008, but returned in 2017 as a consultant.

Later that year, she bought back the controlling stake previously held by Phoenix Equity Partners.

Known for its smart daywear, the fashion retailer attracted celebrity fans over its near 30-year history, including the Duchess of Cambridge, who made their nude court shoes a signature part of her look.