Gerald Ratner is plotting a dramatic comeback at the jewellery business he quit after calling one of its products ‘total c**p’.
Mr Ratner, 75, is in talks to buy back the H Samuel and Ernest Jones brands he ran till he stepped down three decades ago after his much-publicised putdown.
The brands have flagged under American owner Signet, opening a door for a remarkable return for Mr Ratner to the top of the industry after one of the most notorious faux pas in corporate history.
He built his family business Ratner Group into an empire of bling in the 1980s. At its peak, Ratners was the UK’s largest jewellery chain with 2,500 stores, including 1,000 in the US, and a turnover of nearly £200 million a year.
But Mr Ratner’s humour became his undoing in April 1991 when he told a conference of the Institute of Directors at the Albert Hall that a product was ‘total c**p’.
‘We do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95,’ he said, gearing up for his punchline.
‘People say, “How can you sell this for such a low price?”. I say, “Because it’s total crap”.
‘An M&S prawn sandwich would last longer than most of the earrings the company sold,’ he added.
Gerald Ratner (left) and his wife Moira Gerald Ratner (right) in Berkshire in July 2013
Mr Ratner, 75, is in talks to buy back the H Samuel (pictured) and Ernest Jones brands he ran till he stepped down three decades ago after his much-publicised putdown
In April 1991, Mr Ratner told a conference of the Institute of Directors at the Albert Hall that a product was ‘total c**p’ (Pictured: An Ernest Jones store)
Mr Ratner later apologised, saying newspapers misinterpreted his speech. But the fallout led to a plunge in sales and £500 million being wiped off the value of the business almost overnight.
Mr Ratner said he slid into depression and was unable to get out of bed for years. The episode achieved legendary status among businesspeople, with ‘doing a Ratner’ referring to executive gaffes.
He recovered after taking up cycling and returned to the business world in 1996 when he started a health club which he sold for £4million in 2001.
He also built a career on the after-dinner speaking circuit, charging up to £6,000 a gig.
Mr Ratner, backed by investors including British banks, wants to be chairman if a deal succeeds. A price for the business has yet to be agreed and there is no guarantee a deal will be done, sources added.
Signet, listed on the New York Stock Exchange, had a 6.5 per cent drop in revenue for the year to February, while profit slumped to $111million from $622 million the previous year. It did not respond to requests for comment.
