Harry Winston, jeweler to Hollywood stars such as Elizabeth Taylor and Jennifer Lopez, may soon become part of a Canadian mining concern.
The Aber Diamond Corp. said this week that it had entered into negotiations to buy Harry Winston, whose lineage as a luxury jeweler dates to 1932 and whose founder once owned the Hope Diamond.
A purchase price was not disclosed. Aber said there could be no assurances that a deal would be completed.
In reaching out to Harry Winston, Aber is following in the footsteps of other well-known diamond miners, notably De Beers, which is partnering with LVMH Moet Hennessy Louis Vuitton to operate high-end jewelry stores.
For Toronto-based Aber, which co-owns the Diavik diamond mine in Canada, branching into retail provides a new avenue for growth and helps reduce risks. In return, Harry Winston would get a ready supply of diamonds and a deep-pocketed backer ready to invest in the storied brand.
Private equity firm Fenway Partners and Ronald Winston, son of founder Harry, jointly own Harry Winston. Ronald engineered a deal that saw Fenway pay roughly $55 million in 2000 to buy out his brother Bruce’s stake in the company and put an end to a long-running family feud.
In recent months, Fenway had approached several European luxury firms about becoming a strategic partner in Harry Winston, people familiar with the discussions said.
The negotiations with Aber come amid a high-level shakeup at Harry Winston. President Patricia Hambrecht is expected to leave the company when her contract expires at the end of the year, The Post reported several weeks ago.
Hambrecht is credited with jump-starting sales by introducing new, lower priced items like $8,000 hoop earrings and refurbishing the New York store. But people close to the company said more recently sales had failed to live up to expectations.