Fortunoff, Westbury, N.Y., cited capital needs for major expansion when announcing its sale of a major portion of its business to two private-investment groups.

Newsday, the Long Island newspaper, reported the investment groups, Trimaran Capital partners and K Group, purchased a majority stake in the 82-year-old retailer for $250 million, though specific terms were undisclosed.

The Fortunoff and Mayrock families (all descendants of founders Max and Clara Fortunoff) will continue their present leadership roles in the 13-store business and the deal should be finalized this month. Louis Fortunoff and Isidore Mayrock still will oversee the jewelry and home furnishings divisions respectively. Seven other family members will remain in their positions.

"Our family has built the company over 80 years," said Louis Fortunoff, executive vice president. "To take it to the next level, we needed a partner who can provide capital and can mesh with our culture."

Trimaran Capital Partners is a New York-based private-equity investor with a portfolio including previous investments in plus-size apparel retailer Ashley Stewart, Reddy Ice and the International Transmission company. The K Group makes private equity investments in lifestyle and luxury-related consumer products and retail businesses. K Group's principals have been actively involved as senior executive management or investors in companies including Harry Winston jewelers, Fitz & Floyd, Rubbermaid and Things Remembered.

Fortunoff's goal is to add two new superstores in the next three years, and Dean Kehler of Trimaran, identified the northeast as the most likely locations. The change in ownership may lead to an eventual public offering, though a timeline has not been set.

One of the risks of a family business selling out or going public is that it will become a casualty of a corporation's desire to make radical changes.

Fortunoff said the family is aware of the risks, but, he added, "there are certain retail families that have managed to go public and still maintain the family culture, such as Nordstrom. That's the model we're going to emulate."

Fortunoff stores include 5th Avenue, New York City, Wayne, Paramus, Eatontown and Woodbridge N.J., Westbury, Garden City, White Plains, Lake Grove and West Nyack, N.Y.