Finlay Posts $100 Million Loss
By JCK Online Staff -- JCK Online, 5/4/2009 2:36:00 PM
Finlay Enterprises posted a loss of $107.3 million for 2008, and forecast an operating loss in 2009 as well.
The net loss of $107.3 million for the 2008 period is far greater than its net loss of $10.0 million for 2007
The company did say total sales rose 5.2% in 2008, to $754.3 million, compared to $717.4 million in 2007. However, comparable store sales decreased 11% -- the result, the company said, of “decreased consumer spending in a weak economic environment.”
Gross margin decreased by $29.9 million compared to 2007, and, as a percentage of sales, gross margin decreased by 6.2% from 45.2% to 39.0%.
The company noted that it was “in default of certain covenants under the revolving credit agreement. These uncertainties raise substantial doubt about our ability to continue as a going concern.”
In February, the company announced plans to exit the licensed department store based business and close approximately half of its specialty jewelry stores in 2009.
The company has a total of 674 locations, including 566 department store based fine jewelry departments, as well as 108 stand-alone jewelry stores: 69 Bailey Banks & Biddle stores, 34 Carlyle stores, and five Congress Jewelers stores.
For more highlights from Finlay’s recent filing, go here.
-
Agreed! They are dead in the water! Zales is soon to follow (even though I don't understand the massive billboard in the new Yankee Stadium). I expect Zales to file BK in about February after a busted holiday selling season. I do ship both Zales and Finlay, but only 50% down and 50% COD. I also have good UCC's filed on both so we are not one of the unsecured creditors when they eventually do fold up. Our UCC's put us in front of the Banks too. Zales buyers are looking for merchandise from ANYBODY willing to ship them on terms, regardless of price! Finlay and Zales are both very desperate...LOL....funny how the worm has turned and we don't have to take their BS anymore....we are calling the shots now!
NYC Jewelry Manufacturer - 2009-8-5 10:31:00 EDT -
Concerned Manufacturer, you are dealing with the situation in the only smart way. Anybody that has merchandise at Finlay that they have not received full payment for will lose. I think that there is a good chance there will be news next week. I think they want to get through Mother's Day to try to generate sales, but after this weekend begins the long summer with no real "jewelry" buying holiday until the Fall. Also, there was a news release in late Feb. or early March, which stated that Finlay had notified the New York Dept. of Labor that they would be closing their HQ in late May and laying of 226 people. I'm sure they would rather stall/wait until August to file BK so they could run the liquidation through Christmas the way that Whitehall did.
Southwest Guy - 2009-6-5 18:21:00 EDT -
If Finlay folds up shop, an event that looks more and more likely everyday, I expect Zales to follow suit. Zales is still on the hook as a guarantor for all the BBB lease agreements. Though we are still manufacturing for Finlay, for the last 9 months our payment terms have been 50% down payment and 50% COD on all purchase orders. I think this is common place for most manufacturers Finlay uses, and will now be the norm for Zales purchase orders too.Unfortunately, this is not the type of support these companies need from the trade, but I have watched too many people in our business get burned by the folks at Fortunoff, Whitehall.... and the list goes on!
A Concerned Manufacturer - 2009-6-5 07:26:00 EDT
Finlay Finally Has Finale
10/31/2009Signet and Zales Release Financials
11/24/2009Zale 1Q Revenue Down 1.3%
11/19/2007Finlay’s Future in Doubt
07/01/2009Sales Up but Losses Mount for Finlay
08/29/2008
