LK Bennett prepares to call in administrators

British high street

Womenswear retailer LK Bennett are preparing to call in administrators, placing 500 jobs at risk and the closure of 41 stores, if the retailer cannot find a new backer in the next few days.

Founder Linda Bennett informed staff on Friday, LK Bennett are expected to appoint Ernst & Young administrators.

In 2008 Bennett stepped back from the retail company and returned as a consultant in 2017, later that year she bought back the controlling share from Phoenix Equity Partners.

Bennett invested £11.2m into the company upon her return, according to recent available accounts.

LK Bennett showed a loss before tax of £47.9m the year to 29 July 2017, and last month the retailer hired advisors to look at business options including investment of the sale of business.