LK Bennett to close five stores after CVA approval
LK Bennett is the latest British retailer to have its company voluntary arrangement (CVA) approved and the retailer is planning to close five of its stores as a result of that approval.
While the vast majority of its creditors voted for the CVA, those that voted against it included landlord Landsec.
One of the locations to close will include the store at Westfield London, which also makes LK Bennett the latest retailer to realise that while prestigious locations are desirable, they're not always profitable.
The remaining stores will switch to rents based on turnover, which will dent takings for landlords.
A large number of struggling retailers have taken that approach this year and in 2019, either through negotiation with landlords or through the CVA process.
LK Bennett hasn't released details of how hard its trading has been hit this year, but it’s clearly suffered as enforced temporary store closures have kept shoppers away from its locations.
And the premium footwear-to-fashion retailer, whose products are very much focused on special occasions and formal events, has also been hit by the cancellation of weddings, social events and people working from home.
In an extra blow, given that the business is also very focused on the London market, radically reduced tourism flows in London have dented it badly.
The company doesn't expect a rebound in sales until the middle of next year.
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