Sparkling sales after plunge in pound spurs Aurum jewellery sale

A surge in luxury watch sales triggered by the plunge in sterling after June's EU referendum has prompted the owner of some of Britain’s best-known jewellery chains to put them up for sale.

Sky News has learnt that Aurum Holdings, which owns the retailers Goldsmiths, Mappin & Webb and Watches of Switzerland, has begun interviewing investment banks about an auction that is likely to kick off in the coming months.

Aurum (Other OTC: AURM - news) , which is owned by the US-based investment firm Apollo Global Management, has seen luxury watch sales soar by 40% since June as overseas tourists have sought to take advantage of the pound's depreciation.

Sources close to the situation said that Aurum had been one of the big winners from the Brexit vote, enabling it to cash in on its status as the UK's largest retailer of Rolex watches.

Bankers are expected to be appointed to oversee the sale in the next few weeks.

The news comes amid a mixed picture for the high street, with chains such as Next (Frankfurt: 779551 - news) , the clothing retailer, warning about the potential impact of looming inflation.

Supermarkets including Tesco (Frankfurt: 852647 - news) have become embroiled in a row with Unilever (NYSE: UL - news) , the consumer goods producer, over its demand for a blanket increase in the price of its products.

Some global brands, including Apple (NasdaqGS: AAPL - news) and Microsoft (Euronext: MSF.NX - news) , have sought to put their UK prices up in recent weeks in an attempt to "equalise" the impact of the fall in sterling.

Aurum's performance had already been on an upward curve prior to June's referendum.

The company, which was bought by Apollo in 2012, trades from approximately 140 stores, including prime retail sites in Central London, and employs more than 1000 people.

It is said to have recorded about £600m in annual sales,

"Brexit has been hugely beneficial," Brian Duffy, Aurum's chief executive, told the New York Times' international edition this week.

"There are undoubtedly more tourists, and they're looking to spend, because they're confident in the value they're getting."

Aurum's retail fascias are said to account for almost half of all British watch sales.

It was unclear on Wednesday what price tag Apollo would attach to the business, or who the prospective bidders are.

Apollo could not be reached for comment.