Phoenix looks to offload LK Bennett

Alice Murray
27 August 2013

Tweet
Facebook
LinkedIn
Google plus
Send to

Phoenix Equity Partners is in the initial stages of divesting high-end retailer LK Bennett as it sounds out City advisers.

The retailer is expected to fetch a price tag of more than £100m, despite being bought for the same amount in July 2008.

When LK Bennett was purchased by Phoenix in 2008, it operated 90 stores across the UK, Jersey, Dublin and Paris and employed more than 700 staff.

Today, the retailer operates 51 branches but with a much wider geographical spread, with 13 stores in the US and further shops in the Middle East. Furthermore, it is present in 230 branded locations (dedicated branches or concessions in department stores), including 114 in the UK and Ireland and 116 globally.

In 2012 LK Bennett reported a sales increase of 15% to £94.1m. The chain's underlying annual profits also increased by 15% to £62.7m thanks to international and online sales.

The retailer has raised its profile over the past year as the Duchess of Cambridge Kate Middleton favoured its nude-coloured shoes.

Phoenix's decision to sell the retailer will mark LK Bennett's third time on the block since its founder Linda Bennett, who at the time fully owned the business, looked for a buyer in 2004. 3i was linked to a possible acquisition but the potential deal didn't materialise.