Luxury Retailers Asprey and Garrard Sold to American Investors

Troubled British luxury retailers Asprey and Garrard are being bought by a group of private investors and members of its management for an undisclosed amount. Both brands, which supply the British royal family, have been losing their footing in the past year.

One of the reasons is that company spending apparently spiraled out of control, included a reported $60 million spent on rebuilding Asprey's New York store.

Equity firm Sciens Capital Management and hedge fund Plainfield Asset Management bought the two retailers from Sportswear Holdings Limited, who acquired Asprey & Garrard in July 2000.

The deal originated when the owners of the two brands were looking for a $50 million investment to fund expansion costs. Two hundred and twenty five year-old Asprey reportedly paid recently $25 million to end a 20 year, $1 million a month, lease agreement for its 30,000 sq ft store at Trump Tower on New York’s Fifth Avenue. Asprey had another 17 years left on the lease.

Stressed Asprey suffered a public humiliation during the Academy Award ceremony when actress and company face Keira Knightley appeared on the red carpet wearing Bulgari diamond jewelry.

The embarrassment might not end there. Asprey and Garrard might lose their right to hold the royal warrant as the Queen's jeweler. According to the governing rules, if a warrant-holding company is sold its status is automatically reviewed by the Royal Household Tradesmen's Warrants Committee, chaired by Lord Chamberlain.

Garrard was granted a royal warrant in 1843 and Asprey received its first warrant later in 1862.

The company said it is aware of the situation and is keeping “regular contact” with Buckingham Palace. Crown Jeweler David Thomas is part of Garrard team.