Crown jewellers sold off for a princely pounds 250m

End of an Asprey era: Two hundred-year tradition over as 'Queen's gift shop' passes into foreign ownership

Another British landmark succumbed to foreign ownership yesterday when Asprey, the Queen's jewellers, was sold to Prince Jefri Bolkiah of Brunei, the Sultan of Brunei's brother, for nearly pounds 250m.

The deal gives the Prince control of Asprey's Bond Street store in London which is frequently referred to as the Queen's gift shop, as well as Garrard, the Royal jewellers, Mappin & Webb and a host of other designer names.

The deal marks the end of more than 200 years of independence for the upmarket jeweller which was founded by William Asprey in 1781 and has been controlled by the Asprey family ever since.

It also closes a difficult chapter for the company which has been facing a slump in demand from its wealthy customers and has struggled with the effects of an ambitious expansion programme in the past few years.

Asprey joins a long list of prestige London landmarks that have been snapped up by wealthy overseas buyers. The Dorchester Hotel is owned by the Sultan of Brunei, the Al-Fayed family owns Harrods and Harvey Nichols, the Knightsbridge department store, was sold to a Hong Kong businessman, Dickson Poon, in 1991.

Prince Jefri has been a friend of the Aspreys for many years and is a regular customer in the store. Of the pounds 243m he is paying, more than pounds 100m will go to the Asprey family which is selling all but 10 per cent of its shareholding.

John Rolls Asprey, a direct descendant of the founder, will remain as chairman and continue to serve the store's wealthiest customers.

John Asprey said: "My family and I have known Prince Jefri and his family for many years. His ownership of Asprey will enhance the style and status of the group and the Asprey family is delighted to play an important role in its future."

However insiders believe that Mr Asprey is likely to be deeply hurt by the surrender of a business that has been in his family for so long.

One insider said: "He will put a brave face on it. But it must hurt him. I just never thought John would do it. To be the one who sells the family business after all this time must be very difficult."

He has previously battled hard to maintain control of the business.

In 1980 the company was almost acquired by Dunhill, the luxury goods group, after a bitter feud spilt the family. One faction was keen to sell but John and other supporters retained control by buying out the dissenting shareholders.

He vowed then that he would never lose control of the business. "I expect it will go on in the family for ever," he said.

However after a good spell in the economic boom of the 1980s the company has fallen on hard times. Under a flamboyant chief executive, Naim Attallah, the company embarked on a rapid expansion programme intended to broaden the group's customer base beyond the rich and royal.

In a few years the company bought Mappin & Webb from Sears, Watches of Switzerland from Ratners, and Les Ambassadeurs, a Swiss jewellery group.

But the worldwide recession wrong-footed the group and the steady stream of wealthy visitors to the Bond Street store began to dry up.

A profit warning last year signalled the start of the deadline. The share price plunged and it emerged this year that most of the group's assets were in hock to Lloyds Bank.

In June the company announced a pounds 10m loss and revealed that its third largest profit contribution came from its pawnbroking division.

Figures issued yesterday show that Asprey made profits of pounds 1.2m in the six months to September. With its new backer, the company is confident that it can now invest in its stores and improve their financial performance.

Rise and fall of the

House of Asprey

1781: Founded by William Asprey in Mitcham, Surrey, selling dressing cases.

1832: Appointed dressing case maker to the King.

1841: Opens flagship store in Bond Street.

1861: Appointed jeweller to Queen Victoria.

1980: Asprey family almost loses control to Dunhill.

1981: Business listed on Unlisted Securities Market.

1990: Naim Attallah appointed joint managing director. Takes business on acquisition spree.

1990-93: Asprey buys

Mappin & Webb, Watches of Switzerland and Les Ambassadeurs.

1994: First signs of trouble. Asprey shares and profits slump, hit by decline in wealthy overseas buyers, among them, the Sultan of Brunei and Prince Jefri.

1995: Asprey sold to Sultan of Brunei's brother, Prince Jefri, for pounds 243m.