The UK-based retailer Next is reportedly considering a bid for the brand assets of LK Bennett, a premium footwear and accessories label facing restructuring. The potential deal could reshape the luxury fashion segment amid ongoing market consolidation.
- Next is evaluating an acquisition of LK Bennett brand assets, including trademarks and digital platforms.
- LK Bennett reported a 28% revenue decline in FY 2024, leading to operational restructuring.
- Estimated enterprise value of LK Bennett ranges from £40 million to £60 million.
- Next’s 2024 revenue totaled £3.8 billion, underscoring its capacity for large-scale acquisitions.
- The deal would focus on intangible assets, excluding physical stores and inventory.
- Regulatory and competitive concerns may influence final approval of the transaction.
Next has entered preliminary discussions to acquire key brand assets of LK Bennett, according to sources familiar with the matter. The move comes as LK Bennett navigates financial pressures following a significant drop in sales and operational challenges across its retail footprint. While no definitive agreement has been reached, Next is assessing the opportunity to expand its portfolio into high-end womenswear through the acquisition of trademarks, digital platforms, and customer data. The proposed transaction would not include physical stores or inventory, focusing instead on intangible intellectual property and brand equity. LK Bennett, founded in 1993, reported a 28% decline in revenue during the fiscal year ending January 2025, contributing to its decision to restructure operations. The company has since closed several flagship outlets and paused new product launches. Financial records indicate that the brand’s enterprise value is estimated between £40 million and £60 million, reflecting diminished market performance but retaining strong recognition in niche luxury segments. Next, which recorded annual revenue of £3.8 billion in 2024, sees this as a strategic entry point to deepen its presence in the premium fashion category. If completed, the acquisition would mark Next's first major purchase of a luxury brand since acquiring the Dr Martens name rights in 2022. Analysts suggest the integration could strengthen Next’s direct-to-consumer offering and improve margins by leveraging existing distribution channels. However, regulatory scrutiny may arise due to competition concerns within the UK’s high-end footwear market, particularly involving overlapping customer demographics. Market reactions have been mixed. Shares in Next rose 1.4% on news of the potential deal, signaling investor optimism about growth diversification. Meanwhile, LK Bennett’s parent entity saw a 3.7% dip in trading value, indicating uncertainty around its future direction. The final outcome will depend on due diligence, financing arrangements, and approval from relevant oversight bodies.