James Goldsmith

James Goldsmith
Born	James Michael Goldsmith (1933-02-26) 26 February 1933 Paris, France
Died	18 July 1997(1997-07-18) (aged 64)
Other names	Sir James Michael Goldsmith
Occupation(s)	Financier, politician
Years active	1950s–1990s
Known for	Founder of the Referendum Party, Member of the European Parliament, corporate raider

Sir James Michael Goldsmith (26 February 1933 – 18 July 1997) was a financier and politician with dual French and British nationality, belonging to the Goldsmith family. His business endeavors frequently sparked legal battles involving the British press.

In 1994, Goldsmith secured election as a Member of the European Parliament representing a French constituency. He also established the Eurosceptic Referendum Party in the United Kingdom, positioning himself as an early opponent of Britain's membership in the European Union.

Early life

James Goldsmith was born in Paris to Major Frank Goldsmith, a luxury hotel magnate and former Conservative MP, and his French wife, Marcelle Mouiller. He was the younger sibling of environmentalist Edward Goldsmith. The family surname had been anglicized from the original German Goldschmidt. The Goldschmidts were a prosperous Jewish family from Frankfurt with longstanding influence in international merchant banking dating back to the 16th century, rivaling the Rothschilds. James's great-grandfather, Benedikt Hayum Goldschmidt, founded the B.H. Goldschmidt bank and served as consul to the Grand Duke of Tuscany. His grandfather, Adolphe Benedict Goldschmidt (1838–1918), was a multimillionaire who relocated to London in 1895.

Raised initially in Paris, Goldsmith and his family fled France in 1940 during the Nazi invasion, departing on an overcrowded last ship and leaving behind their hotels and significant assets. The family settled in the Bahamas, after which Goldsmith attended school in Canada where he launched a business trapping small fur-bearing animals such as rabbits and mink. He later studied at Millfield and Eton College but left prematurely in 1949 at age 16 after winning £8,000 through horse racing bets. Declaring that "a man of my means should not remain a schoolboy," he departed Eton to assume control of a Parisian enterprise from his brother Teddy that marketed rheumatism remedies and electrical plugs.

Goldsmith fulfilled his National Service as a Gunner in the British Army's Royal Artillery, earning a commission as an officer.

Business career

Throughout the 1950s and 1960s, Goldsmith engaged in high-risk finance and industrial ventures that brought him close to bankruptcy on multiple occasions. Among his achievements were obtaining the British franchise for Alka-Seltzer and introducing affordable generic pharmaceuticals to the UK market. Despite being branded by tabloids as a greenmail corporate raider and asset stripper, he rejected these labels, maintaining that his restructurings enhanced operational efficiency, eliminated poor management, and increased shareholder returns.

After taking over his brother Teddy’s Paris business, Goldsmith expanded sales through creative marketing strategies and grew staff numbers from two to over one hundred employees. He secured distribution rights for slimming products and entered generic prescription drug manufacturing. His distribution of low-calorie breads such as Slimcea and Procea marked a transition into the food sector. In the early 1960s, he co-founded the Mothercare retail chain alongside Selim Zilkha but eventually divested his stake.

With financial support from Sir Isaac Wolfson, Goldsmith acquired several food companies listed on the London Stock Exchange under the umbrella of Cavenham Foods in 1965. Starting with £27 million in turnover and modest profits, he expanded into bakeries, confectionery manufacturers, wholesalers, and retail outlets. By streamlining operations and improving management practices, turnover climbed to £35 million with profits reaching £2 million by 1971.

In 1971, Goldsmith initiated a contested takeover bid for Bovril, gaining control over its diverse brands including Marmite and Ambrosia. He divested dairies and farms to Express Dairies for £5.3 million and sold South American ranches to local purchasers, recovering most of the £13 million acquisition cost. Subsequently, he sold these brand names to Beecham for £36 million. Additionally, he acquired Allied Distributors, which owned grocery stores and smaller chains such as Lipton shops. Facing scrutiny over his management of publicly traded company assets, he increasingly conducted business through private firms registered in the UK, France (Générale Occidentale), Hong Kong, and the Cayman Islands.

Anticipating an economic slowdown in Britain during 1973, Goldsmith proactively liquidated assets. In December of that year, he purchased a controlling 51% stake in US retail conglomerate Grand Union. Attempts to streamline its operations encountered opposition from unions and management alike.

Throughout the 1960s and 1970s, Goldsmith’s ventures were financed by Slater Walker’s banking division; following its collapse amid the secondary banking crisis of 1973–75, he succeeded Jim Slater as chairman.

Knighted in 1976 during Prime Minister Harold Wilson's resignation honours list, Goldsmith formed a partnership with merchant banker Sir Roland Franklin in 1980; Franklin oversaw his American business interests. Between 1983 and 1988, through acquisitions in the US market they developed Cavenham Forest Industries into one of America’s largest private timberland proprietors. Exploiting US accounting conventions that undervalued timberland assets on balance sheets, Goldsmith targeted firms like Crown Zellerbach whose timber holdings exceeded their market valuation.

Most pulp and paper assets were sold off in 1986 to James River Corporation (later integrated into Georgia-Pacific). The brown paper container division was rebranded as Gaylord Container Corporation.

In 1986, reports indicated that Goldsmith’s companies earned $90 million from an attempted hostile takeover of Goodyear Tire and Rubber Company; however, he considered this amount inadequate compensation for failing to complete the acquisition amid coordinated resistance from management, unions, media outlets, and politicians.

Following his retirement to Mexico in 1987 after predicting that year’s market crash, Goldsmith continued engaging in corporate raids including a 1989 joint attempt with Kerry Packer and Jacob Rothschild to acquire British-American Tobacco. He exchanged American timberland assets for a 49.9% stake in Newmont Mining Corporation and served on its board until divesting by 1993; initial purchase agreements prevented him from obtaining controlling interest.

By 1990, Goldsmith had established a more discreet yet profitable global private equity investment operation. By 1994 his Hong Kong-based executives had secured significant stakes within worldwide strategic raw material flows.

In the 1990s, a major Hong Kong-associated stake funded by Goldsmith surfaced within INCO Indonesia’s nickel operations—demonstrating his foresight regarding market developments. His group also became a principal backer of Noble Group—a leading raw materials company listed in Singapore—with longtime protégé Tobias Brown serving as non-executive chairman.

Goldsmith and the press

Goldsmith attracted considerable public attention following a heated conflict with the satirical publication Private Eye. In 1976, the magazine wrongly alleged that he was involved in a conspiracy to interfere with justice concerning the fugitive Lord Lucan, claiming Goldsmith had attended a meeting intended to assist Lucan. While Goldsmith was known to frequent his friend John Aspinall's gambling venue, the Clermont, where Lucan also played, Lucan was not officially a member.

Goldsmith initiated multiple civil lawsuits against both the magazine’s editor and a reporter, additionally pursuing an uncommon criminal libel case. These legal battles resulted in an unexpected partnership with then-Prime Minister Harold Wilson, who shared Goldsmith’s disdain for Private Eye. This political connection reportedly aided Goldsmith during his takeover of the struggling Slater Walker and contributed to his eventual knighthood. Despite the high costs involved, the libel cases were ultimately resolved, though Goldsmith continued to face harsh media scrutiny.

In November 1977, BBC’s The Money Programme broadcast two episodes focusing on Goldsmith: the first criticized his business methods, while the second provided him a platform to defend his actions, emphasizing his company’s £100 million investment aimed at revitalizing acquired firms.

Goldsmith ventured into media ownership by acquiring the French weekly L'Express in 1977 and launching the British news magazine NOW! from 1979 until 1981. However, NOW! failed to achieve its circulation goals and incurred substantial financial losses, leading to its discontinuation after 84 issues in May 1981.

In 1999, BBC’s documentary series The Mayfair Set depicted Goldsmith as a flamboyant speculator and corporate raider whose aggressive tactics propelled him to become one of the world’s wealthiest individuals.

Political career

During the 1980s, Goldsmith developed growing apprehension about the European Economic Community (EEC), suspecting that it sought German dominance over Europe. His concerns intensified in 1992 when the EEC transformed into the European Union, centralizing authority among member states.

In March 1993, Goldsmith voiced his opposition to the EU during a televised lecture on Channel 4's Opinions program; the lecture was later published in The Times under the title Creating a Superstate is the way to destroy Europe. Throughout the mid-1990s, he provided financial backing to the Eurosceptic think tank known as the European Foundation.

In 1994, Goldsmith authored The Trap, which critiqued neoliberal influence over First World governments, particularly their ideological commitment to free trade and large-scale immigration driven by short-term economic interests. He argued that this approach was socially detrimental and called for a revival of classical liberalism combined with mercantilist principles. Additionally, he urged governmental policies aimed at curbing mass migration from poorer regions to developed countries, anticipating demographic challenges and policy shortcomings that would worsen this issue.

That same year, he secured election as a Member of the European Parliament for France under Majorité pour l'autre Europe, subsequently becoming leader of the eurosceptic Europe of Nations group within the Parliament.

Referendum Party

In the early 1990s, after Margaret Thatcher stepped down as UK Prime Minister and the Tories ratified the Maastricht Treaty, Goldsmith, who had previously supported the Conservative Party, determined that it was no longer an effective platform to counter the expanding authority of the European Union. He argued that resistance had to arise outside the traditional parties—Conservative, Labour, and Liberal Democrats—all of which endorsed deeper UK integration into the EU.

Goldsmith established and funded the Referendum Party in 1994, drawing inspiration from the Majorité pour l'autre Europe, with the primary goal of securing a referendum on Britain's potential exit from the EU. The party presented candidates in the 1997 general election. Throughout the mid-1990s, Goldsmith expanded his political profile by utilizing media platforms and televised debates to confront the EU’s supranational ambitions and to denounce what he perceived as bias in mainstream media alongside a Westminster political system that compromised national sovereignty.

During the 1997 election campaign, Goldsmith distributed roughly five million households with a VHS video cassette, aiming to communicate directly with voters and circumvent editorial control by mainstream outlets. He had earlier rejected the idea of employing an offshore radio station, "Referendum Radio," as a means to bypass UK broadcasting restrictions on political broadcasts.

1997 United Kingdom general election

In the 1997 general election, Goldsmith contested as a Referendum Party candidate in London's Putney constituency, opposing former Conservative minister David Mellor, MP. Goldsmith garnered 3.5% of the vote. The announcement of results on television on 1 May 1997 was marked by a charged atmosphere, with anti-EU activists from both the Referendum Party and the newly formed UK Independence Party present. After Mellor was defeated by Labour, a heated confrontation ensued between him and Goldsmith, ending with Goldsmith and his supporters defiantly chanting "Out!", symbolizing their rejection of established political institutions.

Goldsmith’s electoral influence was modest, highlighting the difficulties new parties face within UK politics. Battling a terminal illness during the campaign—which he kept confidential—his capacity was limited. In a BBC interview during vote counting, he conceded his chances were slim; his 1,518 votes were insufficient to unseat Mellor, who lost by a margin of 2,976 votes. Falling below 5% of the vote share resulted in Goldsmith losing his £500 candidate deposit, part of an overall £20 million investment he made in the Referendum Party.

Mellor forecasted that the Referendum Party would soon fade away, which occurred after Goldsmith passed away two months later. Nevertheless, many party activists moved on to subsequent initiatives opposing UK membership of the EU single currency, which eventually developed into the Democracy Movement by 1998.

Sir James Goldsmith’s political legacy endured beyond his death, playing a role in building momentum that culminated in the UK's decision to leave the European Union during the 2016 referendum.

Death

Just two months following his participation in the 1997 general election, Goldsmith passed away at the age of 64 due to pancreatic cancer. He died at his rural residence in Benahavís, located in southern Spain, on 18 July 1997.

Personal life

Goldsmith entered into matrimony three times throughout his life. At the age of 20, he married María Isabel Patiño y Borbón, a 17-year-old Bolivian heiress and daughter of tin tycoon Antenor Patiño and María Cristina de Borbón y Bosch-Labrús, 3rd . When Goldsmith sought Antenor Patiño’s approval for marriage, he reportedly encountered objections due to his Jewish background but responded with wit. Despite familial opposition, the couple eloped in January 1954. Tragically, María Isabel experienced a cerebral haemorrhage during pregnancy and died in May 1954; their daughter Isabel Goldsmith was delivered successfully by caesarean section.

Goldsmith’s second wife was Ginette Léry, with whom he had two children: Manes Goldsmith and Alix Marcaccini. Although the marriage ended in divorce in 1978, they continued to share a home in Paris. Additionally, Goldsmith constructed a residence for her on his Cuixmala estate in Jalisco, Mexico.

In 1978, he wed Lady Annabel Birley, with whom he had previously fathered two children, Jemima and Zacharias. The couple later welcomed a third child, Benjamin. Subsequently, Goldsmith engaged in a relationship with Laure Boulay de La Meurthe—granddaughter of Bruno, Count of Harcourt and Princess Isabelle of Orléans—which resulted in two children: film director Charlotte Colbert and Jethro Goldsmith.

Books

• The Trap Paris: Fixot (1993). .
• The Response New York: Macmillan (1995). .

Pamphlets

• Communist Propaganda Apparatus & Other Threats to The Media. London: Conservative Monday Club.

This document contains Goldsmith’s testimony before the Media Committee of the Conservative Party at the British House of Commons on January 21, 1981.

Speeches

• Small Today, Bigger Tomorrow: Three Speeches from the 1984 Small Business Bureau Conference, co-presented with Margaret Thatcher and Milton Stewart. London: Conservative Political Centre (1984). .
• GATT Speech at U.S. Senate (November 15, 1994).

Books

• Geoffrey Wansell, Sir James Goldsmith: The Man and the Myth, HarperCollins, 1982, .
• Geoffrey Wansell, Tycoon: Life of James Goldsmith, HarperCollins, 1987, .
• Ivan Fallon, Billionaire, Little, Brown, 1991. .
• Richard Ingrams, Goldenballs!: The Incredible Story of the Long and Complex Legal Battle Between Sir James Goldsmith and Private Eye. London: Private Eye Productions, 1979. .

Documentaries

• The Mayfair Set, a BAFTA-winning documentary series from 1999 by Adam Curtis, examining buccaneer capitalists during the Thatcher era with a focus on Goldsmith and other figures from the Clermont Set.

External links

• The Fortunate Gambler: Sir James Goldsmith, a Billionaire Adventurer, Time, 23 November 1987
• , showing Goldsmith interrupting David Mellor