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Friedman’s Creditors File Petition for Involuntary Bankruptcy

Rob Bates, Senior Editor -- JCK Online, 1/23/2008 3:30:00 PM

Several creditors of Friedman’s Jewelers on Tuesday filed a petition to force the struggling chain into Chapter 7.

The creditors include Rosy Blue, Eurostar, Simply Diamond, and Jewelmark. They claim debts of over $10 million.
 
Prior to this petition, the market had been filled with rumors that Friedman’s had tried to make a deal with its creditors to stave off bankruptcy.
 
The creditor’s attorney, Lawrence L. Ginsberg, who was also creditor’s attorney for M. Fabrikant and Sons, said the court had yet to rule on the petition.
 
No one at Friedman’s headquarters could be reached for comment.
 
The company went into Chapter 11 in February 2005, but emerged from it as a private company less than a year later.

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