NEW YORK — Fortunoff, the family-owned fine jewelry and home furnishings retailer, has sold a majority stake to private equity firms Trimaran Capital Partners and K Group. Terms of the deal were not disclosed.
In April, Fortunoff confirmed it had retained investment banker Peter J. Solomon Co. to explore opportunities to raise capital, but denied rumors the company was for sale.
Trimaran and K Group will help finance the $500 million chain’s expansion in its current New York and New Jersey markets and eventually into other areas across the U.S. Fortunoff executives were unavailable for comment on Tuesday, but a spokeswoman said the Fortunoff family will continue in their present leadership roles. However, she did not deny the possibility of a shake-up in the executive ranks once the agreement is finalized in December.
The company operates six Fortunoff stores in Manhattan, Westbury and White Plains in New York and in Wayne, Woodbridge and Paramus in New Jersey. There is also a Fortunoff watch store in Westbury, a clearance center in Garden City, N.Y., and four Fortunoff Gallery home furnishings stores throughout the metropolitan area.
The company declined to divulge specific details regarding its expansion plans, but in September 2003, Louis Fortunoff, executive vice president, told WWD, “We are looking at areas such as Suffolk [County in New York], central or southern Jersey and King of Prussia in Pennsylvania.” At that time, the firm had just opened Fortunoff: The Source at White Plains as part of its growth strategy in the Northeast region.
Fortunoff was founded in 1922 by Max and Clara Fortunoff. Their son Alan served as president and chief executive officer until his death in July 2000. Since then, his wife, Helene, has stepped up to take the reins; Louis Fortunoff is her son.
Trimaran, headquartered here, has made previous investments in Urban Brands, a plus-size apparel company under the Ashley Stewart name; Reddy Ice, a leading packaged ice supplier, and Educational Services of America, a special education school operator.
K Group, also based here, makes private equity investments in lifestyle and luxury consumer products and retail businesses, including Harry Winston and Rubbermaid.