Zell Bros. to Close Unless Buyer is Found

Updated with corrected information 4/6/09 11:03 a.m.

By JCK Online Staff -- JCK Online, 4/3/2009 9:57:00 AM

The venerable Zell Bros. Jewelers in Portland, Ore., will close unless it finds a buyer, The Oregonian reports. The jeweler is an apparent victim of Finlay Enterprises’ financial problems.

The newspaper reports that discount signs are on the windows of the store on Southwest Salmon Street (store location corrected).

Zell Bros., founded by four brothers in 1912, was sold decades ago to Zale Corp., which made it part of the Bailey Banks & Biddle chain of high-end jewelry stores. Finlay Enterprises Inc. acquired Zell Bros. when it bought Bailey Banks & Biddle chain in 2007. It is the only store in the Bailey chain that doesn't carry the Bailey Banks & Biddle name.

Jordan Schnitzer, president of Harsch Investment Properties, which owns the building the company is located and the building it had planned to move into in July—the 16-story Pacific First Center at Southwest Sixth and Taylor—told the newspaper that there were discussions with people interested in taking over the business.

Following its signing of a lease for the Pacific First Center retail space, Finlay told Schnitzer that it planned to close Zell Bros, the newspaper reports. Schnitzer said Harsch has started marketing Pacific Center to other prospective tenants, but he still thinks Zell Bros. could survive.

Leonard Zell, son of one of the founding brothers and a professional jewelry sales trainer, said Zell Bros. will close unless a purchase deal goes through, the newspaper reports. He would not disclose details.