Spencer Gifts Acquired by Gordon Brothers; Former Linens 'n Things President Takes Reins

BOSTON and NEW YORK -- An investor group led by Gordon Brothers Group and Palladin Capital Group announced that it has acquired Spencer Gifts from Vivendi Universal Entertainment. With more than $400 million in annualized revenue, Spencer Gifts operates over 700 specialty gift and Halloween stores in the United States, Canada and the United Kingdom under the Spencer Gifts, Dapy, Glow and Spirit brand names. The company is headquartered in Egg Harbor Township, NJ.

Gordon Brothers, a Boston-based retail finance and asset management firm and Palladin Capital Group, a New York-based merchant banking firm, structured the transaction through their new joint venture, GB Palladin Capital, LLC. Other investors include New England Development. The terms of the transaction were not disclosed.

"Spencer Gifts is an established mall-based retailer with a strong brand name, loyal consumer following and dedicated professional work force," commented Mike Freize, ceo of Gordon Brothers Group. "We look forward to using our merchandising, operational and investment expertise to strengthen Spencer's position as a leading specialty gift resource.

Mark Schwartz, the president of Gordon Brothers Group, stated, "We are confident that the additional focus and capital provided by Gordon Brothers and Palladin, combined with new management leadership, will help Spencer continue its 55 year history of solid growth."

Former Linens 'n Things President Joins Spencer Gifts

Schwartz also announced that Steven Silverstein has joined Spencer Gifts as president and ceo. Prior to joining the Spencer team, Silverstein spent 11 years at Linens 'n Things, most recently as president. While there, he was instrumental in growing the company from $180 million in sales to over $2.1 billion and from just three stores to nearly 400 in the U.S. and Canada. Prior to joining Linens 'n Things, Silverstein was the merchandising vp of home textiles for Bloomingdale's.

"We are very pleased that Steven has accepted this important leadership role at Spencer Gifts. His in-depth knowledge of merchandising and operations, coupled with his high energy level and consumer-driven marketing strategies, will be invaluable to the current management team," said Schwartz, who is also the president of Palladin Capital Group as well as managing principal of GB Palladin.

"I am thrilled to be at Spencer Gifts," said Silverstein. "Spencer's mission has been to create outrageous fun by providing the best assortment of irreverent and trendy merchandise and gifts. I believe in this concept and am confident that we can build on the company's strong name and market position to take Spencer to the next level. I am looking forward to harnessing the input and support of both the Spencer associates and my new partners at Gordon Brothers and Palladin to expand both sales and profitability."