Friedman's Files for Chapter 11
Rob Bates, Senior Editor -- JCK Online, 1/28/2008 11:01:00 AM
Following a petition by debtors to force it into Chapter 7, Friedman's Jewelers has filed a motion to convert its case into Chapter 11. The motion was granted by the U.S. Bankruptcy Court, District of Delaware.
This is be the second time the chain has gone into Chapter 11 in three years. It filed for Chapter 11 in early 2005 and it emerged a reorganized company later that year.
Friedmans owns 388 stores in 19 states, and wholly owned subsidiary Crescent Jewelers operates 85 stores in three states, papers say. Crescent Jewelers also plans to file a Chapter 11 case, the company said in court papers.
The company estimated its assets are between $100 and $500 million, and its debts are more than $100 million.
Top creditors include Sumit Diamond ($7.5 million), Rosy Blue ($6.2 million), and Masterpiece Diamond ($3.6 million).
The company said it took this action because its "revenues failed to meet expectations, as it experienced "declining store revenues ... infrastructure and expenses became disproportionate to revenues."
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All right, look at the main story ... It looks like the end of the line, except for 78 stores ... Very sorry to say ..
Rob Bates - 2008-1-4 17:11:00 EDT -
Fair question. We are trying to figure that out ourselves. We have access to the the legal papers but things seem pretty much in limbo. Here is the latest full report we saw on things; www.thedeal.com/dealscape/2008/03/the_cryptic_auction_of_friedma.php
Rob Bates - 2008-1-4 11:11:00 EDT -
What's going on with the Friedman's bankrupcty. It seems too quiet. The rumor is that they are going to liquidate, since the buy out from an undisclose buyer fell through. If anyone knows let it be known. I feel that everyone who works for Friedman's needs to know what's going on.
a concern associate - 2008-30-3 09:58:00 EDT -
2/1/08 was indeed a payday for this company (both) companies! get it right!
got your back! - 2008-6-3 22:19:00 EST -
Friedmans and Crescents are both BIG ass jokes! They will close your store with out letting you know they are closing it. They will cut your pay without letting you know, you will just have to see it on your check. Upper Management wont back you up with customer issues, instead they make the store employees look bad while they look like KINGS. The employees of these two companies don't know anything about whats going on with the company unless they google it like I did.
sam king - 2008-6-3 22:15:00 EST
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