Garrard, the venerable British jewelry brand, has encountered some rough waters recently—including the near bankruptcy of its parent, Asprey International Ltd., which had pumped in more than $500 million to reinvigorate Garrard and its sister brand, Asprey. But with the help of new jewelry collections, including a line of contemporary pearl jewelry, and new owners, the Garrard brand may be headed for smoother sailing.
The new owner, Yucaipa Companies, which reportedly paid between $20 and $30 million for the company, is an investment group with $30 billion in mergers, acquisitions, and blue chip directors. Its managing partner, Ron Burkle, is a billionaire entrepreneur and major political donor. He's a friend of former President Bill Clinton, who also sits on the Yucaipa board of directors along with Reverend Jesse Jackson.
This is not Garrard's first brush with the elite. Founded in 1735 with a claim to be the first luxury brand, Queen Victoria made Garrard the crown jeweler in 1843.
According to a spokesperson, Garrard has grown since its relaunch in 2002, ending its fiscal year this past March with a 51 percent sales increase. In the last year, 14 new doors were opened bringing the brand's store total to 24.
Garrard's previous owners, Lawrence Stoll and Silas Chou, two of the executives responsible for transforming Tommy Hilfiger into a $1.87 billion brand, formed a partnership and bought Asprey and Garrard in 2000 for an estimated $150 million. They hoped to turn the dowager brands into a $400 million company by 2012. However, many luxury market analysts think that opportunity was squandered through a series of miscalculations, naiveté, and arrogance.
"It was a business that was a grand old lady creaking at the seams. She needed a face-lift," says George Wallace of London-based retail specialists, Management Horizons Europe. "Instead they created a Frankenstein monster." The Asprey brand also has been sold, to Sciens Capital Management and Plainfield Asset Management.
Garrard had been positioned as a high-end jeweler with the potential to compete with Tiffany. Among the initiatives started to reposition the brand were the introduction of the "Wings" and "Yorrick" collections, new interior store designs, rediscovery of the original raspberry colored packaging, and the "G," which appears in the pearl collection.
The new owner, Yucaipa Companies, which reportedly paid between $20 and $30 million for the company, is an investment group with $30 billion in mergers, acquisitions, and blue chip directors. Its managing partner, Ron Burkle, is a billionaire entrepreneur and major political donor. He's a friend of former President Bill Clinton, who also sits on the Yucaipa board of directors along with Reverend Jesse Jackson.
This is not Garrard's first brush with the elite. Founded in 1735 with a claim to be the first luxury brand, Queen Victoria made Garrard the crown jeweler in 1843.
According to a spokesperson, Garrard has grown since its relaunch in 2002, ending its fiscal year this past March with a 51 percent sales increase. In the last year, 14 new doors were opened bringing the brand's store total to 24.
Garrard's previous owners, Lawrence Stoll and Silas Chou, two of the executives responsible for transforming Tommy Hilfiger into a $1.87 billion brand, formed a partnership and bought Asprey and Garrard in 2000 for an estimated $150 million. They hoped to turn the dowager brands into a $400 million company by 2012. However, many luxury market analysts think that opportunity was squandered through a series of miscalculations, naiveté, and arrogance.
"It was a business that was a grand old lady creaking at the seams. She needed a face-lift," says George Wallace of London-based retail specialists, Management Horizons Europe. "Instead they created a Frankenstein monster." The Asprey brand also has been sold, to Sciens Capital Management and Plainfield Asset Management.
Garrard had been positioned as a high-end jeweler with the potential to compete with Tiffany. Among the initiatives started to reposition the brand were the introduction of the "Wings" and "Yorrick" collections, new interior store designs, rediscovery of the original raspberry colored packaging, and the "G," which appears in the pearl collection.
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