Pandora, a Nasdaq-listed Danish jewellery company, is buying out the brand’s Irish retail network for €23 million.
The Danish parent is buying all 24 stores from BJ Fitzpatrick, a low-key, family-controlled group based in Dublin. The deal also includes distribution rights for the brand to five franchisee stores and 10 concessions in Northern Ireland.
The Irish stores had sales last year of €24 million, Pandora told its investors on Tuesday. A further €5 million was generated by the Northern Ireland stores and the wholesaling business.
The consideration includes about €3 million for jewellery stock, and the switchover is due to take effect on June 1st. Pandora, which has switched its strategy recently to take back control of its retail networks, will take over all leases previously operated by BJ Fitzpatrick
It is expected that all 180 staff at the Irish Pandora network will shift to the Danish group. Locations in the deal include those at Arnotts, Grafton Street and Henry Street in Dublin, and the Kildare Village outlets centre.
"We have enjoyed a successful working relationship over the last 11 years and wish Pandora continued success in Ireland," said Stephen Fitzpatrick, chief executive of the BJ Fitzpatrick group. "We will continue to grow our existing business whilst looking at new retail opportunities to bring to Ireland where we continue to believe there is significant scope for expansion."
The Danish group said the deal “is consistent with Pandora’s intentions to increase the owned and operated retail footprint in markets of importance”.
Store network
"Over the years, BJ FitzPatrick has ensured that both the Pandora brand and store network have been developed across Ireland," said David Allen, the brand's president for the Europe region. "We will now continue the efforts to establish [the brand]."
In addition to its Pandora business, BJ Fitzpatrick also owns the Parfois fashion retail network. Among the other brands it distributes are Scuderia Ferrari, Juicy Couture and and Alex & Ani bracelets.
BJ Fitzpatrick had sales last year of more than €36 million, more than three quarters form its retail division and the rest from wholesaling. Retained profits were almost €14 million at the end of July.
The 80-year old group is controlled by three shareholder blocs, comprising Mr Fitzpatrick, another family member Patricia Fitzpatrick, and the family's business partner Martin Kinirons.
