Jewellery retailer Theo Fennell has received a recommended cash offer to acquire the brand from Mirfield 1964, an investment vehicle which plans to replace acting chief Theo Fennell with former Goldsmiths chairman and chief executive Jurek Piasecki.
As part of the proposed £2.9m bid, founder Theo Fennell and finance director Alasdair Hadden-Paton will remain as directors of the company and will also join the board of Mirfield 1964.
Mirfield 1964 was founded on June 11 2013 specifically for the purpose of the proposition. The vehicle includes a consortium of investors such as Better Capital founder Jon Moulton, cosmetics tycoon Mike Jatania, and the former LOCOG deputy chairman Sir Keith Mills.
Each plan to invest £1.5m in the retailer. EME Capital and Piasecki, a former director of Comet, have agreed to invest £500,000 each.
Mirfield said founder Theo Fennell has agreed to assign and transfer to the Theo Fennell company all rights associated with the name “Theo Fennell” and associated intellectual property.
Mirfield said it plans to add additional retail experience to Theo Fennell’s management.
A statement by Mirfield said: “Mirfield recognises the Company’s brand and existing creative talent remain of the calibre required to enhance and expand the Company’s position as a highly respected designer and retailer. Mirfield intends to add additional retail experience to the Company’s management.”
Rahan Shaheen, a partner in EME Capital and a director of Mirfield 1964, said: “Theo Fennell is a well-established British luxury brand which is highly respected for its distinctive designs and creative talent.
“The Mirfield team have strong experience and proven track record of investing in and growing successful luxury and consumer businesses. We believe that with the necessary funding, a strong management team in place and a focus on broadening the product range, Mirfield can help Theo Fennell to realise its full potential and develop the business into a successful global luxury brand.”
Theo Fennell, founder and creative director of Theo Fennell, said: “This is an excellent opportunity for the business. With the additional capital and management expertise of Mirfield we will be able to build an even stronger business and I am personally delighted that I will continue to play a central role for Theo Fennell.”