Ben Sherman sold to US private equity-backed Marquee Brands

Ben Sherman, the heritage menswear brand worn by some of Britain's biggest music legends, has been sold to an American private equity firm for £40.8m.

Marquee Brands, which was set up as a shell company last year by US buyout group Neuberger Berman, has bought the business from its current owner New York-listed Oxford Industries.

The Telegraph previously reported that Oxford had hired advisers at boutique firm Financo to explore a sale of Ben Sherman. The menswear business had also attracted attention from BlueGem, the private equity owner of upmarket department store Liberty.

Ben Sherman became widely known for its mod-era brightly coloured button-down shirts in the 1960s, but remained popular as it was adopted in the late 1970s by The Jam and their followers. Its popularity continued as it was then embraced by the ska scene in the 80s and Britpop in the 90s, with British bands Oasis and Blur both sporting Ben Sherman Harrington jackets.

^{The Jam led the mod revival in the late 70s and regularly wore Ben Sherman}

Ben Sherman was founded in 1963 in Brighton by Arthur Benjamin Sugarman who changed his name to the more American-sounding Ben Sherman.

Mr Sugarman had moved to the US at the end of the second world war and worked in his father-in-law's clothing business. When he returned to Britain he started the company with the aim of replicating the preppy Ivy League style that was being worn by the growing mod movement.

The fashion business that became synonymous with the swinging sixties has passed through many hands since then. Private-equity firm 3i backed a £4m buyout from the failed Northern Irish Dunkeld fashion group in 1993 before selling to the Atlanta-based Oxford Industries for £80m. The womenswear collections were ended in 2010.

“Ben Sherman remains a uniquely classic British brand with a loyal following across five continents and a smartness that’s ageless. Its heritage, style and authenticity fits perfectly within Marquee's growing portfolio,” said Cory Baker, chief operating officer of Marquee Brands.

Ben Sherman is the second investment for Marquee Brands following its acquisition of Italian luxury group Bruno Magli in February.

“We are particularly excited about this transaction as Ben Sherman is consistent with our mission to acquire high-quality brands with substantial global growth potential,” said Michael DeVirgilio, president of Marquee Brands.

"The current management team under Oxford's leadership has done a great job building on the core essence of the brand. We’ve received supportive messages from retailers across the globe that share our view of the growth opportunity ahead.”