LK Bennett has raised £16m of new funding to accelerate expansion in the US.

The luxury retailer has secured the sum from Lloyds Bank Wholesale Banking & Markets Acquisition Finance to replace its existing facilities. 

The business has traded ahead of expectations in its five wholly-owned stores since its first store opened in Chicago in April 2011, as well as in other international markets, including France, Spain, the Netherlands and the Middle East. 

The retailer operates 156 branded outlets around the world, of which 107 are in the UK.

The company has continued to enjoy strong year-on-year growth across the globe, including in challenging conditions in the UK.

Sales in the year ending July 2012 are expected to be over 10% ahead of last year and profitability is also expected to have increased significantly.

The five-year facility replaces the facility put in place at the time of the acquisition of LK Bennett in 2008 by Phoenix Equity Partners and Sirius Equity and increases the company’s available liquidity at a reduced interest cost.

LK Bennett executive chairman Robert Bensoussan said: “We are pleased with the outcome of this competitive process which has provided us with more money at less cost and for the confidence Lloyds Bank has shown in the business.

“We continue to focus on rolling out LK Bennett into new markets, as well as pursuing selected opportunities for growth in the UK.” 

Lloyds Bank Acquisition Finance director Chris Birt said: “Despite the wider challenges the retail industry is experiencing, LK Bennett operates in the highest growth sub-sector, as a premium brand which has multi-sales channels, a healthy balance sheet and a clean store portfolio.

“In backing this top quartile business, we are supporting an existing Lloyds Bank customer and a strong management team who have grown overseas sales by 23 per cent over the past four years.”