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Losing British luxury brand Smithson, best known for its leather goods and stationery, was offloaded to private equity companies from its longtime owners.
The brand that began life in 1887 when Frank Smithson opened his first store on New Bond Street, London, was purchased by Oakley Capital for a private price.
The change in ownership comes almost 16 years after it was purchased by the Italian Tivoli Group. In recent years, they have struggled to recover from a sluggish demand for luxury goods, and last year Smithson, closing its flagship store on New Bond Street, reached its peak.
The group sells weekly diaries for £185 and greeting cards for £13, but recorded losses on £28.5 million sales before the annual taxes until March 31, 2024.
Oakley Capital announced the Smithson deal on Tuesday along with the acquisition of Italian furniture brand Fornasetti and Italian leather and travel accessories producer Fabrica Pellet Terry Milano.
The acquisition was made by the iconic Brandco, Oakley’s investment vehicle. Oakley said the indirect contribution to the transaction is expected to be £15 million.
Smythson was able to report a 4.6% increase in sales like the previous year despite identifying several challenges, including high inflation and weak footholds in department stores that undermine the wholesale business.
It added that its strategy is to focus on “improving retail networks, closing unprofitable stores,” and to cover costs as it expands in key markets.
Smithson, who produced stationery for Winston Churchill and royal members, is one of seven global brands that hold two royal warrants.
The company said on Tuesday that Oakley, which supported British luggage maker Glovetrotter and high-end leather and apparel brand Connolly, will accelerate growth and help expand the brand.
“We can’t create Heritage Brands overnight,” said Peter Dubens, co-founder and CEO of Oakley, and said “we’re fortunate to have Smythson in Oakley.”
