LK Bennett to be sold in £100m deal

Updated: Monday, 30 June 2008

News in UK

High-end fashion chain LK Bennett is set to fall into private equity hands as early as this week as the finishing touches are made to a £100 million deal, according to a report.

Founder Linda Bennett is close to netting a multi-million pound windfall from the sale, which is being ironed out by reported preferred bidder Phoenix Equity Partners, the buyout group with a taste for luxury fashion, according to the Sunday Express.

The so-called “Queen of the Kitten Heel” hired advisers to run an auction at the end of last year and it is believed that Phoenix has seen off competition so far from potential rival bidders including fashion chain Hobbs, owned by private equity firm 3i, as well as several overseas investors.

Phoenix has a track record in the high-end fashion sector, having previously invested in footwear brand Jimmy Choo and handbag brand Radley.

A takeover would come four years after Bennett abandoned earlier sale hopes after offers reportedly fell short of a mooted £75 million asking price, with poor Christmas trading hampering its efforts to achieve the price tag.

The group was founded by Ms Bennett in 1990 with one store in Wimbledon village selling shoes and accessories.

She trained in footwear design at Cordwainers College in Hackney, but started out with a handbag label, selling to stores such as Harvey Nichols, before setting up the inaugural store.

The chain now has more than 70 stores across the UK and overseas, with international branches including stores in Paris and Dublin.

Neither LK Bennett nor Phoenix were available for comment.

(LK Bennett)

Koutons scouts for partners in Middle East to form JV

Posted 30 Jun, 2008,

Source :

Article in ET on 29 Jun, 2008,

NEW DELHI: Apparel chain Koutons Retail is scouting for partners to form a joint venture as it looks to expand in the Middle East with about 25 outlets in the region by 2009.

The company has earmarked Rs 40 crore for rolling out the stores, the first of which would come in Dubai this year. Koutons Retail is also gearing up to diversify its business with plans to launch a range of footwear collections for men and kids by October this year, besides increasing number of outlets in the domestic market.

“We are in discussion with three companies in the Middle East for rolling out our stores there. We are looking forward to establish joint ventures in the region, where we will keep the majority stake,” Koutons Retail India Ltd Chairman DSP Kohli said.

The designing, branding and production would be done by Koutons, while the local partner would be responsible for supply chain management and logistics, he added.

Without divulging the possible partners’ name, Kohli said: “We are planning to set up about 25 outlets by the end of next year in the region and it can entail an investment up to Rs 40 crore. The first store will be opened in Dubai this year.”

The stores would target the requirements of Indians living in the Middle East countries, he said. Besides Dubai, the company is also looking at other cities with considerable Indian population, like Abu Dhabi, Sharjah and Doha. It would also expand its footprint to Qatar and Iran, Kohli said.

The company would enter the Chinese market by the end of this year, besides plans to enter in the European market, he added.

The Gurgaon-based firm has also planned to launch its footwear range for men and kids by October in the current year. “We will come out with our footwear range for men and kids by October this year as part of our strategy to offer complete range of wardrobe and accessories to the customers under one roof,” Kohli said.

The apparel manufacturing company would source footwears from China as well as from the domestic market, he added. The company is planning to increase the number of its retail outlets to 1,800 by the end of current fiscal from the present 1,280.

“Our growth this year will mainly be driven by our expansion in the ladies and kids wear segment under Le Femme and Junior brand names,” he added.

Out of the current 1,280 stores, over 691 stores are exclusive shops, while the balance are Charlie Outlaw stores. Koutons Retail is targeting an over 50 per cent jump in its revenue in the current fiscal to Rs 1,250 crore from Rs 793 crore in 2007-08.

When asked if the spiralling inflation and the surge in cotton prices would lead to any hike in the prices of its products, Kohli said, “Right now we have enough stock, but if the rising prices do not cool down by next year, we might think of raising the prices of our various products then.”

The company had raised about Rs 100 crore through initial public offering (IPO) last year.