LK Bennett, the global fashion brand based in the UK, has reportedly launched a proposal to go into company voluntary arrangement (CVA).
If the CVA works out, it would result in closure of 5 stores in addition to moving its remaining stores to turnover-based rent system.
The fashion retailer has said that both the initial and the current lockdowns in the UK and Ireland have hit LK Bennett’s sales badly, as a result of which it has been challenging for the retailer to sell eventwear and workwear – its biggest strength.
The sales, LK Bennett believes, will not recover until next year.
The womenswear retailer has said that to save as many jobs as possible and continue serving all its customers, it is working towards CVA.
LK Bennett is currently being advised by the restructuring firm Alvarez & Marsal.
The 30-year-old retailer offers exquisite collections of apparels, shoes and accessories and currently has 400 employees, of whom 300 are in retail roles.