Luxury British Heritage Brand Smythson Acquired by Oakley Capital in Strategic Buyout

The 138-year-old British luxury leather goods manufacturer and royal warrant holder Smythson has been acquired by private equity firm Oakley Capital for an undisclosed sum, marking a significant shift in the brand’s ownership structure.

The deal sees Smythson transition from Italian ownership under Tivoli Group to join Oakley’s Iconic BrandCo portfolio, which houses prestigious brands including Alessi, Globe-Trotter, and Connolly. The acquisition comes after several challenging years for the luxury retailer, which has faced declining sales and mounting losses.

Recent financial reports reveal Smythson’s parent company experienced a reduction in turnover from £32.1 million to £28.47 million in the year ending March 2024. The company’s pre-tax losses narrowed to £6.69 million from £8.03 million, following strategic decisions including the surrender of its iconic New Bond Street lease.

The luxury sector’s uncertainty, coupled with rising interest rates and cost-of-living pressures, has significantly impacted Smythson’s performance. The brand, established in 1887 by Frank Smythson, has historically attracted an elite clientele, including Hollywood legend Katharine Hepburn and maintains strong connections to British high society.

Peter Dubens, Oakley Capital’s founder and chief executive, emphasised the value of heritage brands, stating: “Heritage brands cannot be created overnight. We are fortunate to welcome Smythson to Oakley.” The acquisition aligns with Oakley’s recent luxury sector investments, including Italian brands Fornasetti and Fabbrica Pelletterie Milano.

Smythson’s chief executive Paolo Porta expressed optimism about the acquisition, highlighting plans to leverage Oakley’s expertise in international expansion while preserving the brand’s British heritage. The move represents a crucial turning point for the luxury retailer, potentially positioning it for renewed growth in the global luxury marketplace.