Gerald Ratner
Encyclopedia
Gerald Irving Ratner is a British businessman. He was formerly chief executive of the major British jewellery company Ratners Group (now the Signet Group
). He achieved notoriety after making a speech in which he jokingly denigrated the company's products, which caused the company's near collapse.
on his experiences as a boy in Petticoat Lane Market
. He observed that "the people who shouted the loudest and appeared to give the best offers sold the most."
Ratner joined the family business in 1966, and on this basis he built up an extremely successful chain of jewellers during the 1980s, of which he was chief executive. The shops shocked the formerly staid jewellery industry by displaying fluorescent orange posters advertising cut price bargains and by offering low price ranges.
on April 23, 1991. During the speech, he commented:
He compounded this by going on to remark that some of the earrings were "cheaper than an M&S prawn sandwich but probably wouldn't last as long." After the speech, the value of the Ratners' group plummeted by around £500 million, which very nearly resulted in the firm's collapse.
Ratner resigned in November 1992 and the group changed its name to Signet Group
in September 1993.
Today, Ratner's speech is still famous in the corporate world as an example of the value of branding and image over quality. Such gaffes are now sometimes called "Doing a Ratner", and Ratner himself has acquired the sobriquet
"The Sultan of Bling". Ratner has said in his defence that it was a private function which he did not expect to be reported, and that his remarks were not meant to be taken seriously.
in 1996, which was sold for £3.9m in 2001. Ratner now runs, in collaboration with SB&T International Ltd, an export manufacturing company based in India and the online jewellery business Gerald Online.
Signet Group
Signet Jewelers Limited is the world's largest specialty retail jeweller. The Bermuda-domiciled, British headquartered company is listed on both the New York Stock Exchange and the London Stock Exchange. The group focuses on the middle mass jewelry segment and has number one positions in both the...
). He achieved notoriety after making a speech in which he jokingly denigrated the company's products, which caused the company's near collapse.
Early life and career
Gerald Ratner based his philosophy of businessPhilosophy of business
The Development of management theory and philosophy considers the fundamental principles that underlie the formation and operation of a business enterprise; the nature and purpose of a business, for example, is it primarily property or a social institution; its role in society; and the moral...
on his experiences as a boy in Petticoat Lane Market
Petticoat Lane Market
Petticoat Lane Market is a fashion and clothing market located on Wentworth Street and Middlesex Street in East London.-The Modern Market:It is one of a number of traditional markets located to the east of the City of London. A few hundred yards to the north is Old Spitalfields market, which has...
. He observed that "the people who shouted the loudest and appeared to give the best offers sold the most."
Ratner joined the family business in 1966, and on this basis he built up an extremely successful chain of jewellers during the 1980s, of which he was chief executive. The shops shocked the formerly staid jewellery industry by displaying fluorescent orange posters advertising cut price bargains and by offering low price ranges.
The speech
Although widely regarded as "tacky," the shops and their wares were nevertheless extremely popular with the public, until Ratner made a speech at the Institute of DirectorsInstitute of Directors
The Institute of Directors is a UK-based organisation, established in 1903 and incorporated by royal charter in 1906 to support, represent and set standards for company directors...
on April 23, 1991. During the speech, he commented:
He compounded this by going on to remark that some of the earrings were "cheaper than an M&S prawn sandwich but probably wouldn't last as long." After the speech, the value of the Ratners' group plummeted by around £500 million, which very nearly resulted in the firm's collapse.
Ratner resigned in November 1992 and the group changed its name to Signet Group
Signet Group
Signet Jewelers Limited is the world's largest specialty retail jeweller. The Bermuda-domiciled, British headquartered company is listed on both the New York Stock Exchange and the London Stock Exchange. The group focuses on the middle mass jewelry segment and has number one positions in both the...
in September 1993.
Today, Ratner's speech is still famous in the corporate world as an example of the value of branding and image over quality. Such gaffes are now sometimes called "Doing a Ratner", and Ratner himself has acquired the sobriquet
Sobriquet
A sobriquet is a nickname, sometimes assumed, but often given by another. It is usually a familiar name, distinct from a pseudonym assumed as a disguise, but a nickname which is familiar enough such that it can be used in place of a real name without the need of explanation...
"The Sultan of Bling". Ratner has said in his defence that it was a private function which he did not expect to be reported, and that his remarks were not meant to be taken seriously.
After Ratners
Following an unsuccessful attempt to become a jewellery consultant in France during the mid 1990s, he set up a health club in Henley-on-ThamesHenley-on-Thames
Henley-on-Thames is a town and civil parish on the River Thames in South Oxfordshire, England, about 10 miles downstream and north-east from Reading, 10 miles upstream and west from Maidenhead...
in 1996, which was sold for £3.9m in 2001. Ratner now runs, in collaboration with SB&T International Ltd, an export manufacturing company based in India and the online jewellery business Gerald Online.