Signet may sell brands as sales fail to sparkle

SIGNET, the world's largest jewellery firm, is reported to be mulling over the potential sale of UK retail chains H Samuel and Ernest Jones after facing declining sales.

It is thought that Signet could rake in between 400 million and 600m for the division, which has around 540 shops.

Signet generates the bulk of its profits from the United States, where it has more than 1,000 stores under the brands Jared and Kay Jewellers. The firm's US like-for-like sales were up 8.9 per cent in the year to 29 January against a decline of 1.4 per cent in the UK.

The UK division has been hit by weak consumer confidence, but has taken steps to improve its performance through new merchandise, staff training and marketing.

Signet has asked advisers to sound out private equity buyers about the UK business, although it is understood the process is in the very early stages and the company may still opt to hold on to the operation.

The business began under the Ratners name in 1950 but following former chief executive Gerald Ratner's comments about the quality of its products, changed its name to Signet in 1993.