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RAPAPORT... Theo Fennell plc reported a loss of $1.3 million (GBP 878,616) for the first half that ended on March 30, compared with a loss of $2.6 million (GBP 1.7 million) one year earlier. Revenue declined 18 percent year on year to $8.8 million (GBP 5.77 million). After announcing results, a buyout offer was drawn up for the luxury jeweler, which sent shares surging 90 percent to 11.88 pence. The jewelry retailer's chairman, Rupert Hambro, said, ''Although it has been another challenging year for the company, we have made some solid progress having expanded our product ranges, upgraded our IT systems and strengthened our overseas network. We have continued to reduce costs and restructured our wholesale division. We are confident that these changes will enhance the company's performance.'' In other news, Mirfield 1964, an investment group formed for the purpose of a takeover, led by Jon Moulton, made a $4.4 million (GBP 2.9 million) offer for Theo Fennell. Upon completion of the agreement, Moulton, Sir Keith Mills and Mike Jatania will each hold a 21.8 percent share of the retailer, while Jurek Piasecki will hold a 12.3 percent share, EME Capital a 7.3 percent stake and company founder Theo Fennell a 5 percent interest. Assuming the deal closes, current shareholders in Theo Fennell will hold 10 percent of the issued share capital of Mirfield 1964 in the form of Mirfield B shares. Fennell and the company's finance director, Alasdair Hadden-Paton, will remain as directors and join the board at Mirfield 1964. Moulton, Mills and Jatania plan to invest $2.3 million (GBP 1.5 million) in Theo Fennell, while EME Capital and Piasecki have each agreed to invest $757,000 (GBP 500,000). Fennell agreed to transfer all rights associated with the name “Theo Fennell” and associated intellectual property to the new venture. Mirfield recognizes Theo Fennell's brand and existing creative talent remain of the caliber required to enhance and expand the company’s position as a highly respected designer and retailer. Mirfield intends to add additional retail experience to the company’s management, according to its statement. Fennell added, “This is an excellent opportunity for the business. With the additional capital and management expertise of Mirfield we will be able to build an even stronger business and I am personally delighted that I will continue to play a central role for Theo Fennell.”
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