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First Post-Christmas Victim: Christian Bernard Jewelers

December 30, 2008


Some thoughts on the liquidation of Christian Bernard Jewelers:

- It's interesting the chain, whose web site is still up as I write this, didn't even bother going Chapter 11, but went straight to Chapter 7. This is likely because: a) with the credit crunch, it's harder to get DIP financing, and b) with the change in the bankruptcy laws, it's far more difficult for retailers in Chapter 11 to truly reorganize themselves. A Wall Street Journal article this week notes that “only two retailers have successfully emerged from bankruptcy proceedings since the amendments to the [bankrutpcy] code were passed.”

- The way this company suddenly closed up shop has to be scary for anyone who has a job, buys jewelry, or has any kind of dealings with a jewelry retailer.

 

It seems the company just closed the day after Christmas, leaving a lot of people to wonder what just happened. Here is a Hartford, Connecticut's TV station's account:

 

Christian Bernard Jewelers' two Connecticut locations seems to have shut their doors without any notice...

 

The gold necklaces are still draped in the window at the Christian Bernard jewelry store in Westfarms Mall. The other inventory, still prominently displayed on the shelves. But on the door, a sign that reads simply, "Will not open Today." …

 

Both Westfarms Mall and the Stamford Mall tell us, they were given no advance notice this would happen and no information about what will happen now.

 

The story goes on to note:

 

While there's no set rules for when and how a company can close up shop, under the Unfair Trade Practices Act a company cannot deceive or make promises to customers knowing they're going out of business.

 

The Attorney General's Office says they're looking into the situation with Christian Bernard. Without so much as a heads up, consumers are suddenly left high and dry.

 

There is a similar mention of abruptly closing Christian Bernards in this Virginia newspaper, and this newspaper in Stamford, Conn.  


- One final thought: With Friedman's, Whitehall, Four Points (which went Chapter 11 last year), and now Christian Bernard, that makes at least four jewelry chains that liquidated this year. Quite a year.


UPDATE: This is a disturbing comment we got on our news story ...


"What happens to customers who had items in for repair, and special orders placed before the holidays? ... My fiance and I, who just bought wedding bands, and have her engagement ring in to Christian Bernard for resizing, are very nervous!"

 

Any ideas?

UPDATE 2: My talk with the bankruptcy trustee.



Posted by Rob Bates on December 30, 2008 | Comments (29)


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December 30, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Kim Zelden commented:

Hey Rob, My husband and I took in my engagement ring for repairs ($75) at the Woodfield location in Schaumburg Illinois. He went to pick it up today and found the store closed? What have you found out since? Corporate is not answering phones. We did contact our States Attorney General but looks like we'll be waiting for it for a LONG time ......Did you just purchase your ring on credit? If so, you should call your credit card company. We are out of luck.....my ring is nine years old. I sent emails to local news places seeing if I can't get some action out of the powers that be at Christian Bernard but I am not even sure their is anyone to discuss it with left at the business.




December 30, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Rob Bates commented:

Hi Kim (and any others) ... just to clarify ... this is a blog for people in the jewelry industry. I don't have any jewelry at CB and was just repeating someone's comment on my news story. I haven't talked to people at Christian Bernard, and only know what is in the bankruptcy papers. But good luck and let us know if you find anything else ...




December 30, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Kim Zelden commented:

Thanks. Sorry...didn't read the whole thing. We did get information to contact their bankruptcy attorney and I have left a message and emailed them regarding the ring. If you want that information I can forward it to you. Kim




December 30, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
supplier commented:

its a shame, we dealt with them for two years they owed us alot of money, we encouraged them alot last year we realized that they were paying to slow and we decided to cut them completley, to bad Peter there buyer was a nice guy.
good luck
X SUPPLIER




December 31, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
etienne perret commented:

It is no surprise Christian Bernard went bankrupt. The store had no particular identity, no visual style, and almost no national marketing. Unfortunately I think there are many more such jewelry operations that will fall victim to the globalization, Internet based world in these tough times.




December 31, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
former employee commented:

The sad story for the employees is that we all worked tirelessly through the holiday...we had not the slightest idea this was happening behind our backs. The CEO told us just yestersay that she is in the same boat as we are; out of a job with no resources. Now we see she knew well before us, and is deceiving us as well. We were the faces of Christian Bernard! Where will we get the opportunity to work and not be pointed to as thieves, and those who took peoples money knowing we would go out of business! We have gotten screwed on all fronts.




December 31, 2008
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Upset Customer commented:

I just ran across this article and I guess I'll through in my 2 cents. I purchased a diamond engagement ring from Christian Bernard midway through December for the love of my life. The setting was in the process of being made and was to be picked up around December 26th. I can't even describe how upset I was that I'll no longer be able to get the ring. I had everything planned out to ask her to marry me this January on the anniversary of the day that I told her I loved her. Unfortunately since I don't have the finances to procure another ring in time that won't happen. All too often businesses fail to take into account the humanity of their customers. Certainly the higher ups at Christian Bernard could have let people know what was going on but didn't due to some financial benefit they were able to gain. I don't blame any of the employees in the store, I'm sure they didn't know either. Now I'm stuck trying to dispute the charge with my Credit Card company. Words can't even say just how disappointed I am.....




January 1, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Anon commented:

Someone should point out that Christian Bernard is owned by the Rev. Moon machine; perhaps employees and customers can take legal action against the mother ship. Also, in Europe and in other countries, CB goes to market as a brand sold through non-owned retailers. Those manufacturing and distribution operations have not gone out of business as far as anyone knows. Can anyone locate and apply legal and/or moral pressure at that level?




January 1, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
retired jeweler commented:

From previous business dealings with CB inthe past, i cannot say i am suprised at this action. They have always displayed an arrogant attitude and showed no respect towards people.




January 2, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Pat Bowlby commented:

What ever CB's problems are we in the trade need to learn from this and go on ward. I have been in this business for over 30 years and while times are tough you get lean, mean and fight on. Globalization? what is that? As a retailer and a business man I sell myself (and my associates) and the emotion that goes along with the happiness we convey. The internet, blue nile bring 'em on. I will beat their prices for better quality and hold my customers hands through the incredible experience of buying a memory that lasts a lifetime. I sell happiness not a commodity. Be positive, learn and run a tight ship. Life is good live it well!




January 3, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
A Previous Employee commented:

From what I understand, Bank of America unexpectedly called in their loan the day after Xmas. Everyone was shocked and nobody knew it was coming.




January 3, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Max Mansur commented:

My wife had a new pair of diamond earrings given before Christmas in to be changed to screw posts at the Fair Oaks Mall store in Fairfax Virginia. They called and said they were ready but the day after Christmas the store was closed. How do we make a claim and retrieve these items? This is not the chain's assets, but ours that they have in their possession, so such things cannot be




January 3, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Nate Holley commented:

I left my wedding ring (15 years old) at the Woodfield Mall Christian Bernard store to be resized the day before Christmas and was supposed to get it back on December 27th. I just learned of the bankruptcy and would like to know what I can do to get my ring back. It was specially designed and cannot be replaced.




January 3, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Rob Bates commented:

This story (www.dailyherald.com/story/?id=261900&src=1) includes a list of suggestions for what to do ... And in this story (hamptonroads.com/2009/01/jewelers-sudden-shutdown-leaves-customers-jam) the company's bankruptcy trustee says that a phone line will be up soon and recommends how to handle it ... That should get you started ... Good luck ...




January 4, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
MR LIQUIDATOR commented:

PEOPLE, USUALLY THE BANKS INVOLVED WANT TO HELP THE CONSUMER. I HAVE DEALT WITH REPAIR AND SPECIAL ORDERS IN THE PAST AND THE BANKS INSTRUCTIONS TO THE INCOMING FIRM IS USUALLY DO WHAT YOU CAN. REPAIRS IN PARTICULAR ARE KEPT BY THE COURT APPOINTED TRUSTEE AFTER THE STORES ARE CLOSED. YOU SHOULD CONTACT THAT TRUSTEE




January 4, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Jake commented:

I have a deposit down on a engagement ring at CB's store in the walt whitman mall on long island. People were standing outside with confusion and worry. This is a big inconvience that should be taken up with the media.




January 5, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Homer commented:

If you leave your car at a mechanic that suddenly goes out of business, your car does not magically become part of the bankruptcy estate. Special orders are another matter--if you put a deposit on a ring that has not been completed, you may find yourself in the same boat as the other unsecured creditors depending on who you're dealing with.




January 5, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
King of Prussia, PA commented:

Jewelers,

We got my custom engagement ring from CB and have a warrantly with them. Any idea if we can go after CB for the mold of my ring so that we can have it for future repairs with another jeweler? Not sure if we have any 'rights' - rings was 30k.

Thanks.




January 5, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Rob Bates commented:

Hey guys ... I just spoke to someone knowledgeable and there should be some good news (at least within the context of what we're talking about) and some clearer information in a bit. I hope to have something soon. But rest assured that people are well aware of the issues involved here. Best, Rob




January 5, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
ex-employee commented:

All the managers/associates know right now is that hopefully be Jan 15th there will be a liquidator in place. Any merchandise that was in for repair is NOT the stores property and should be returned to the customers.

We are as stunned as our customers in this situation, and believe me when I say our first concern in the conference call that was held with the trustee was what about our customers repairs and special orders? I advise ANYONE who had a special order that has not been filled or delivered yet to contact your local attorney or credit card companys about getting your money back...there must be some legal way that the company can not keep the deposits that people put on their orders.

Please please know we are going to try and help in any way that we can, but we do not have any assurance that the liquidators will hire former employees and we have bills and mortgages too....please know you are all in our prayers and we are truly sorry that we were lied to and are now finding out all the details of what Isabelle and Tetyana did.




January 6, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
WantRingBack commented:

Here is the contact info to get your merchandise back:
The lawyer handling the case:Charles M. Forman
HIS CONTACT INFO:
Forman Holt Eliades & Ravin
80 Route 4 East, Ste 290
Paramus, NJ 07652
T: 201-845-1000/F: 201-845-9112
cforman@formanlaw.com
www.formanlaw.com




January 6, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
anon commented:

Who are the owners of this chain? Are they any way associated with ORO VIVO chain of stores in Europe? Is that closing too? The reason I ask is because we sold a million worth loose diamonds to buyers in Hong Kong who claims they are associated with Christian Bernard and Oro Vivo. They are still buying big lots of diamonds. Your insight is greatly appreciated.




January 6, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
janis commented:

Ibought a hearts on fire ring or did I? I never received paperwork and I am not sure that I picked up the ring I was promised. With the promise of future reset ring and service, I wonder how else I was deceived.




January 7, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
ex-employee commented:

Yes, ORO VIVO is part of the Christian Bernard group, as far as is known they are not closing.

As for Hearts on Fire, please contact HOF via their website, however they are in a holding pattern as well until the liquidators come in and things begin to get sorted out.

the lawyers office is a good place to start, however they are not always returning phone calls or inquiries right now.

To the clients feeling they were decieved, please know that as a former employee I am feeling just as decieved, had I known any of the information that has come to light in the last few days, I would never had promised warranties, returns or repairs, the integrity I have and that my staff and all of the CB store staffs have is to great. We did not know that the company was closing until we were called on the 25/26 of decemeber.




January 7, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Rob Bates commented:

Hi ... I just interviewed the bankruptcy trustee, and that should hopefully answer a lot of questions, Go to the top of this page, or here: www.jckonline.com/blog/870000287/post/540038854.html.




January 12, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Slava commented:

Rob any news when the jewelers can pick up their tools at the stores. I've not been able to work for 2 1/2 weeks




January 12, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Rob Bates commented:

Slava, I really don't know. You should contact the bankruptcy trustee. His contact details are in my interview with him. Best, Rob




January 18, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
susan commented:

Janis: most gemologists will be able to ascertain whether your diamond is a Hearts on Fire. It is usually laser inscribed on the girdle edge beginning with HOF and requires 10x or more magnification to read. And as mentioned before, you can contact the Hearts on Fire website to inquire about a copy of the certificate or even AGS (American Gem Society), as they are the laboratories that usually do the diamond quality documents for Hearts on Fire.
I was a vendor for a few Christian Bernard locations and although I have been paid, the check has bounced. I have contacted the trustee and will wait and see.
I know that the employees didn't know what hit them and along with their own unemployment they are very concerned about their customers.




January 22, 2009
In response to: First Post-Christmas Victim: Christian Bernard Jewelers
Mystic commented:

May I offer condolences to those dealing with the closing of Christian Bernard. I workin the jewelry industry, although it is not CB. I recently fell victim to my store closing without any notice at all. Went to work Monday and was closed by 2:30pm same day. I was very fortunate that I had no repairs or exchanges/lawayays to deal with. But- I DO FEEL VERY UPSET that my loyal customers have to go elsewhere for service without any notice or warning. Our district manager was at the store to scan items out...and offically close the location. It makes me sad to see....but it opens my eyes to everything else. I have began to watch the company stocks. They have fallen to an all time low...less than $1.30/share where last year at this time they were at $34.00/share. Anyone want to bet that this 'national chain' jeweler is going out of business????





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