LK Bennett has been given the green light by creditors to move ahead with its company voluntary arrangement (CVA) that will see five of its stores permanently close and the rest move to turnover-based rents.
The British womenswear retailer employs 400 staff and has 18 standalone stores.
The retailer said last month that the CVA would result in a small number of job losses as the business attempts to “mitigate the ongoing financial impact of the Covid-19 pandemic”, Drapers reported.
LK Bennett to restructure store estate
It said at the time that its eventwear and workwear categories, which are usually among its best performing, have both been impacted by Covid-19, while a drop in tourism in London has also hit sales.
It also said it doesn’t expect sales to fully recover until mid-2021.
The retailer fell into administration in March 2019 after calling in advisers in February to examine its options. A month later, Chinese franchise partner Byland UK bought the UK, Irish and wholesale division of the company.
In April this year, accountancy firm EY, which is overseeing the administration, extended the process by another year.
A long list of British fashion companies have launched CVAs in recent months as they struggle to cope with the impact of Covid-19, including New Look, AllSaints, Bair Group, Hotter Shoes and Monsoon Accessorize.
Photo credit: LK Bennett, Facebook