Gerald Ratner plots to buy back jewellery empire he ruined

Gerald Ratner has launched an audacious bid to buy back the UK arm of the jewellery empire he ruined with his infamous gaffe more than three decades ago.The businessman, 76, is seeking to acquire the H Samuel and Ernest Jones chains from US-listed Signet Jewelers and install himself as chairman after he lost control of the businesses in the early 90s.Mr Ratner has launched an appeal to the shareholders behind the brands as part of a bid to purchase the loss-making UK arms, which he said he has been pursuing since the summer.The brands were once part of Ratners Group, the firm that Mr Ratner was forced to exit after he declared their products were “total c--p” in a speech at the Institute of Directors.Mr Ratner also remarked that some of the firm’s earrings were “cheaper than a prawn sandwich at Marks & Spencer – but I have to say, the sandwich will probably last longer than the earrings”.The fallout gave rise to the phrase “to do a Ratner”, which means to make a disastrous own goal.Mr Ratner said he was attempting to acquire the UK division of Signet – which was formerly Ratners Group before it was rebranded – because he claimed its American owners were “doing everything wrong”.To launch his bid, Mr Ratner said he has been in touch with Signet’s chief executive via a bank in New York that is acting on his behalf.He is now launching an appeal directly to the company’s shareholders, who Mr Ratner hopes will start questioning why the US owners do not sell the loss-making division.Mr Ratner told The Telegraph: “The reason we’re putting pressure on the shareholders is simply because of the fact that they’re doing so badly in the UK, they’re closing shops all the time and last year they sold their best shops.“So we took the view that they’re not really interested in the UK. We approached them thinking that it’s in the interests of shareholders to just get rid of it.”Signet, which moved its primary listing from London to New York in 2008, is worth more than $3.7bn (£2.8bn).While its US business is successful, the UK division is underperforming with losses before tax rising from £483,000 to £1.4m in the year to February, accounts show.Mr Ratner said: “They’re getting everything wrong. When I had shops in America, I didn’t sell anything that I sold in the UK. They speak the same language, that’s about it. Everything is different. Every product is different. The way they buy is different.“What the Americans have tried to do is make the classic mistake and try to transport a formula across the Atlantic. It has never worked and it never will work. The first rule is that you’ve got to run businesses totally differently to suit the local market.”Mr Ratner said he would overhaul the shop’s offerings to sell more lower-priced goods, adding: “I would offer fantastic value for money.”He is backed by a consortium of investors who are primarily British, with one American. He said they have the funds lined up.Mr Ratner added: “I did have 2,500 shops. I had the American business, I had Ratners, I had watches – and it was a much bigger thing. So it’s nothing like the idea that I’m coming back exactly as it was.“But I would very much like to try and get that business back on its feet. It would be a wonderful experience. I’d love it.”Signet was contacted for comment.