The investment by Freeman Spogli & Co. in Rhode Island retailer Ross-Simons does not mean major changes, according to Ross-Simons president and chief executive officer Darrell S. Ross. Recently it was announced that private investment firm Freeman Spogli will hold a majority interest in the 48-year-old Cranston-based company, a leading independent direct marketer and specialty retailer of fine jewelry, tabletop, gifts, collectibles and other home decorative merchandise. The company offers its products via three channels of distribution: catalogs, the Internet and through its retail stores in eight states.
Because of the investment, “one of Rhode Island’s premier firms will be able to grow more quickly,” Ross said. “We will increase employment at our headquarters faster than we would have been able to do.”
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Ross will remain as company president and CEO; he is also Ross-Simon’s largest individual shareholder.
According to Ross, no changes are planned for the company’s day-to-day operations.
“As far as most employees, they won’t be aware of this, but they will have a brighter future because more opportunities will be in place because of this affiliation,” said Ross. “From an operational point of view, there won’t be any changes.”
More opportunities might include the opening of additional retail stores and new affiliations on the Internet, Ross said.
“We might be able to acquire some other catalog titles that will be compatible,” said Ross.
Founded in 1952 by Ross’s parents, Ross-Simons is one of Rhode Island’s fastest-growing companies, posting sales of $220 million last year, according to the Providence Business News 2000 Book of Lists. Ross-Simons also ranked among the Ocean State’s largest private companies last year, with more than 800 employees.
Also included in last week’s deal is Geary’s of Beverly Hills, purchased by the Ross family in 1998. Geary’s is a luxury tabletop, giftware and jewelry retailer, whose products are sold internationally through its catalog and Web site.
According to Ross, Freeman Spogli was attracted to the company because “they were impressed with the employees and management force already in place.”
Freeman Spogli, headquartered in Los Angeles, was founded in 1983. The firm invests primarily in consumer-related companies, specifically retailing, direct marketing and service businesses. Since its inception, the firm has invested over $1.7 billion in 34 companies with aggregate enterprise values of more than $11 billion.
Just this year, Freeman Spogli has invested in MVP.com, an online retailer of sports, fitness, outdoor gear and apparel that counts Michael Jordan, John Elway and Wayne Gretzky among its founders; PartsAmerica.com, Internet distributor of auto parts and accessories; and Sur La Table, Inc., specialty retailer of kitchenware and tabletop accessories, among others.
Freeman Spogli also holds interest in another online jewelry retailer, Miadora.
Last week, Ross-Simons opened its 11th retail store, in a suburb of Washington, D.C.
“We’re doing well,” Ross said. “We really have a unique opportunity because of the synergies between our Internet, catalog and retail businesses. Our Web business is adding sizzle to our retail business, our retail business is adding sizzle to our catalog business. They’re all intertwined.”
