LK Bennett founder buys back business, plans rapid expansion

The saga surrounding LK Bennett's ownership came full circle today as the company confirmed that founder Linda Bennett had purchased the shares held by Phoenix Equity Partners.

The entrepreneur, whose businesses range from shoes to women's clothing, did not disclose how much he paid.

Bennett sold his controlling stake in the company to Phoenix in 2008 for an undisclosed price estimated to be between £80m and £100m.

The ownership change may not be all that surprising, given that Bennett retained a stake and remained on the board after the sale, and he returned to the company in an active role as a consultant this spring, as CEO Darren Top works to revive the founder's vision of “a little bit of Bond Street on the high street.”

The company has had an up-and-down run since it was first sold and has had a tough time recently. Losses widened from £1.1m to £4.5m, sales fell 1% to £92.3m and gross profits fell 2% to £58.3m. But like-for-like sales for the same period were up just 1% and have risen 6% since the end of the year. Online store sales grew 19% last year, with US and Canadian sites growing 35%.

So what's next? Well, it looks like a continuation of what we've seen over the past few months. The company is already trying to turn its fortunes around by adding new categories like swimwear (through a deal with Biondi) and jewelry, as well as “stretching the price range” to reach a wider customer base and improve the in-store experience. The company is opening new stores and kiosks at a rapid pace, with plans for around 40 stores per year.

CEO Darren Topp seemed delighted with the change in ownership. He said: “The management team and I are pleased with Linda Bennett's continued commitment to the business.” [She] “She is extremely well positioned to support our continued growth. Linda has been working with the team since April to improve our product, grow our business, and support the changes we have initiated.”

Bennett added that over the past few months he has been “feeling really excited and confident about the potential of the brand.”
The 27-year-old company operates 262 stores in 31 countries, with online sales accounting for almost a third of its total sales, and opened stores in China, Russia, Qatar, the United States and the United Kingdom last year.