Report: Fortunoff ... On the Verge? (UPDATE - Or Bought?) - Cutting Remarks

JCK Online

Cutting Remarks

Blog

Cutting Remarks

« Friedman's: A "Change of ... | Main | The Diamond Dealers Club -- Wi... »

Link This | Email this | Blog This | Comments (2)

Rob Bates

Report: Fortunoff ... On the Verge? (UPDATE - Or Bought?)
January 30, 2008

According to WWD.com, which quotes "financial sources," Fortunoff "has stopped paying its bills in recent weeks and could be considering Chapter 11 bankruptcy court protection as well as other options to reorganize its business." The article notes that Chapter 11 is "just one option" and the Fortunoff family has assets to sell.

Even so ... yikes! I'd heard some rumblings of this -- and Fortunoff was on last week's JBT Frequent Inquiry list -- but this would be shocking news. Whenever friends asked me for a retailer to recommend, Fortunoff generally topped the list. It also recently opened stores in Atlantic City and Staten Island -- though those were for furniture (its other business), rather than jewelry. Sign of the times?

We'll watch this, and let you know anything more ...

UPDATE: Things seem to be moving fast. This New York Times article says Lord and Taylor may buy Fortunoff. It also notes "several bidders" who have expressed interest. Things seem a little less bleak...

Posted by Rob Bates on January 30, 2008 | Comments (2)

January 30, 2008
In response to: Report: Fortunoff ... On the Verge? (UPDATE - Or Bought?)
Beware commented:

Just another example of a fantastic family business destroyed by an investment Firm

January 31, 2008
In response to: Report: Fortunoff ... On the Verge? (UPDATE - Or Bought?)
Mall Jewelry Boy commented:

Very interesting NY Times article. It fails to note that if Lord and Taylor succeeds in this, they will be terminating their leases with Finlay. That will hurt, considering that Lord and Taylor, along with Bloomingdales, was called out as one of the better performing host department store groups. However, it will definitely be a win for Lord and Taylor. This will make L and T much more competitive with the like of Neiman Marcus, who have very strong fine jewelry and furniture ("Horchow") departments.