Morning:
13°c
Jewellery designer to the stars Theo Fennell was today back in the driving seat of the company which bears his name.
Together with financier Rupert Hambro and hotelier Alasdair Hadden-Paton he has once again become the largest shareholder in the jewellers which counts the Beckhams, Elton John and Kate Beckinsale among its customers.
Mr Fennell, 57, was ousted from the company he founded 27 years ago as its then controlling shareholders Richard Northcott, chairman, and Viscount Cowdray, deputy chairman, attempted to grow the brand overseas and took it more down market.
“It's a fantastic feeling to be back in harness,” said Mr Fennell. “It's not so much having my baby back as returning to look after a recalcitrant teenager at the moment.”
He promised customers that new designs he had been working on during his year in the wilderness would be “back on the shelves by July.”
Mr Fennel's return was announced to staff before the flagship store in Chelsea opened this morning. “The cheers almost lifted the roof off,” said Mr Hambro.
The three men had been plotting to relaunch Mr Fennell's career in a new business but in the last three weeks struck a deal which saw them buy 2.7 million shares from Mr Northcott and Viscount Cowdray today. Together with Mr Fennell's existing stake that gives them a 29.9% stake in the business whose stock market value has plunged in the last two years from more than £25 million to just £5.5 million today.
“It is very convenient that Richard and Viscount Cowdray have decided to move on,” said Mr Hambro even though the two will continue to hold a 28% stake in the business and have made no promises not to sell out.
Mr Fennell said: “Two years ago we had a very good business which was probably undercapitalised. My vision of the business was somewhat at odds with that of the two major shareholders. That led to my departurea year ago. The company pursued what you might call a more commercial path in terms of profduct and business and lost its way. It was more high street than department store.
“I knew there was a lot of unhappiness among the rank and file. We have always been a guerilla force here rather than the armies which are wielded by the big luxury brands.”
He believes that relaunching during the deepest recession in living memory is no bad thing. “At times like this people are looking for originality in jewellery. Pieces with a very distinct flavour and character. It's not so much about price. Even now people still choose to buy a quality loaf from their baker rather than pick up a sliced loaf from the supermarket.”
In the meantime, Mr Hambro, scion of the banking family and adviser to the wealthy, and Mr Hadden-Paton, friend of many top golfers, will be doing their best to welcome clients back to Theo's shops.
