Mike Ashley wants to buy LK Bennett, will Linda Bennett also bid?
today Mar 19, 2019
It may sometimes seem that Mike Ashley has enough on his hands at the moment, between running House of Fraser, his Debenhams ambitions, and running the other chains that he has acquired. But it seems that he's also interested in buying LK Bennett.
He has reportedly made an approach for the collapsed premium fashion-to-footwear business as the opportunities to buy struggling or failed brands continue to accelerate in Britain.
The FT reported that he made an indicative offer for the company last week, citing unnamed sources.
The company, which continues to operate following its administration filing, is seeking buyers and the newspaper also said that its directors have been presenting to potential buyers in recent days.
Despite its problems, LK Bennett remains a respected brand with a very high profile given the Duchess of Cambridge's fondness for it. The former Kate Middleton is a major fashion influencer in the UK and wears the label frequently.
The sources also told the newspaper that Linda Bennett, LK Bennett’s founder who made a return to the company in 2017, hasn't so far indicated whether she'll make a bid. She had already pumped more than £11 million of her own money into it recently in an attempt to keep it afloat.
Her opinions on the matter can't be ignored as she is a significant creditor of the chain and that means she'll be able to influence who it’s sold to.
Bennett had originally sold a 70% stake in the company in 2008 for around £70 million but reports suggest that she paid just £3 million in 2017 to take back control.
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