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Robbins Brothers: Breaking It Down

March 13, 2009

So I’ve talked to people about the Robbins Brothers bankruptcy plan, and it’s certainly an interesting one:

 

-         There are no plans at present to close any of its 16 stores. The chain will be sold into two pieces. As we’ve noted, the first piece – six stores, in the Houston and Chicago areas – will be sold to Spence.

 

-         Here is the unusual part.  The second chunk – the remaining ten stores (in California and Dallas/Arlington) – will be sold to Robbins Bros Jewelry, an affiliate of  Weston Presidio, the investment firm that currently owns 49% of Robbins Brothers (which is the entity that has gone Chapter 11 and will soon no longer exist). That means those ten stores, as well as all the company’s inventory, are basically being sold to one of its owners, which then takes control of the company after having all the benefits of Chapter 11 (settled debts, re-negotiated leases, etc.)

 

-         With Weston Presidio now in total control, the Robbins family will no longer have any ownership of the company. Steve Robbins, current CEO, is not expected to continue with the company in a management role.

 

All this, I should add, still has to get approved by the court.

 

As to why the company had to file, most people I spoke to blamed the company’s too rapid expansion. After it was recapitalized in 2004, it went from seven stores to 16 in about four years, and apparently the plan was to eventually hit 50. Apparently, the expansion’s speed was in part to prevent competitors from stealing its format or grabbing prime real estate.

 

A big roll-out like this may have been possible in more hospitable times – the company has a great reputation in its local area (and its sales training mantra was “no discounts,” always good to hear). Unfortunately, the Southern California economy hit the wall, Houston was hit by hurricanes, and the Chicago stores never really took off – resulting in the action we just saw.

Posted by Rob Bates on March 13, 2009 | Comments (21)

July 17, 2009
In response to: Robbins Brothers: Breaking It Down
Wisened -Up commented:

As a past employee (who thankfully got out before all this monkey business) I can say that there are a lot of brilliant people who work(ed) for Steve Robbins...his original vision was awesome, however he let foolish people make foolish decisons and what's worse is that he placed more foolish people in charge of stores...No one wants to spend more money on "the experience" when your made to feel lied to and cheated...Why have they had to file chapter 11? Expansions (incredibly excessive, expensive & unneccessary), over stocking hideous in-house designs and a lack of real development of their own people to treat customers with repsect is what's done them in...good luck to everyone in the future (and I agree with GladImGone).


June 21, 2009
In response to: Robbins Brothers: Breaking It Down
Sarah commented:

I have no idea how this diamond thing works. We just bought our rings there last year and need to have them serviced. We live in Houston. Does that mean we are just screwed unless we drive up to Dallas?


May 12, 2009
In response to: Robbins Brothers: Breaking It Down
Gladimgone commented:

As a former employee I can tell you that RB can blame expansion and the econ. all they want, but this BK started long ago because of decisions by people like the VP of Stores. And if you ask anyone associated with RB things got worse with the hiring of Andy Heyneman.


May 10, 2009
In response to: Robbins Brothers: Breaking It Down
Mark Pimental commented:

The deductible only applies to the 1 year risk insurance offered through the purchase of the Peace of Mind Service Promise. Their is no deductible on our lifetime diamond warranty. VP of Stores Robbins Bros.


April 29, 2009
In response to: Robbins Brothers: Breaking It Down
Homer commented:

Given that the deductible verbiage is asterisked from 'Lifetime Diamond Warranty Promise', I'd say it's a fair interpretation that the deductible applies to the Lifetime Diamond Warranty. I see nothing on that page referring to an insurance policy. Don't pick on MJB--his contributions to this blog are long-standing and well-known.


April 28, 2009
In response to: Robbins Brothers: Breaking It Down
Confuzzled commented:

Here's the warranty page, I'm now very confused. The asterisk (footnote at bottom of the page) is attached to "lifetime diamond warranty promise". Anyone want to clarify/interpret? www.robbinsbrothers.com/why-shop-with-us/what-you-get.asp


April 28, 2009
In response to: Robbins Brothers: Breaking It Down
MJB- Seriously?? commented:

YOU need to read more carefully- the deductible you are refering to has nothing to do with the FREE lifetime diamond warranty. It DOES apply to the ALL RISK Insurance package RB purchases for you for one year- ITS OPTIONAL!! Stop writing things that arent true- Are you one of those hateful people that like to start fires just to watch them burn? Get it RIGHT before publishing ...

Edited by moderator. Be civil, please.


April 26, 2009
In response to: Robbins Brothers: Breaking It Down
Recent RB Employee commented:

Guys don't believe a word that they are telling you. As of Monday the people that work for the Chicago RB will not have jobs. Spencer diamonds decided to pull out of the investment and no longer wanted to take part of a company that is going down the drain. John Cordova, who has worked for the company for years, has resigned and decided to work elsewhere...isn't that a sign that he knows something that they refuse to reveal to the workers. The dooms day for RB is May 4th/5th I believe....if the initial investors decide to back out of the deal then everything will be liquidated as planned.


April 23, 2009
In response to: Robbins Brothers: Breaking It Down
MJB commented:

Interesting note regarding the diamond replacement warranty: Hidden at the bottom of the webpage in VERY tiny and lighter-colored print, RB charges a "10% deductible payment", $100 minimum, to replace a diamond under "Lifetime Diamond Warranty Promise". This message is nowhere near the section that describes the diamond warranty itself, and is only seen if you click a tiny asterisk next to the index at the top of the page. Deceptive, since you can shop online and never realize this? But at least doesn't look like they require 3/6/whatever month checkups to keep it active.


April 23, 2009
In response to: Robbins Brothers: Breaking It Down
RB Employee commented:

The Dallas and California stores are still going to be operating as Robbins Brothers, so there should be no problems as far as your warranty and special orders as for the Houston and Chicago areas the stores will still be in operation until the middle to the end of May if there are special orders and or any problems with you rings you will at that time have to deal with the Dallas or California stores


April 13, 2009
In response to: Robbins Brothers: Breaking It Down
Former RB employer commented:

From: Diane Ferraro Sent: Wednesday, March 04, 2009 9:41 AM To: Executives


April 10, 2009
In response to: Robbins Brothers: Breaking It Down
Molly commented:

I purchased an expensive diamond from Robbins Brothers and was mislead and ripped off. My diamond was certified through AIG - GIA backwards. It was appraised at 1/3 of what I paid. With an advise of my appraisal, I sent it to GIA and received 2 grades worst in color and clarity. When I went back to the Dallas sore o get my money back, their manager told me "too bad". I should have done more research before purchasing. There are many upset cusomers on the web.


April 7, 2009
In response to: Robbins Brothers: Breaking It Down
Jack Hoff commented:

Weston presidio was part owner before the bankrupty. how can they be allowed to buy it back at a bargain and screw the vendors out of their money. furthermore, they are keeping the same management in place. ""We can't solve problems by using the same kind of thinking we used when we created them." [Robbins Bros. executives] need to be left on the curb like yesterday trash

Edited by moderator.


April 1, 2009
In response to: Robbins Brothers: Breaking It Down
Homer commented:

If a company goes out of business, a warranty from them is worthless. That's a risk you take with any consumer product. In this case, it's going to depend on how the new RB is structured. It is a possibility, but my guess is that if the RB name survives, the new owner will want to service the warranties in order to capitalize on the company's goodwill and past business.


April 1, 2009
In response to: Robbins Brothers: Breaking It Down
Worried about RB commented:

I just recently bought an engagement ring at Robbins Brothers in Houston. How will this bankruptcy affect my lifetime diamond warranty? Is there a possibility that the warranty will be canceled as a part of the bankruptcy outcome?


March 23, 2009
In response to: Robbins Brothers: Breaking It Down
RB Employee commented:

If you place a special order, you will by covered by the bankruptcy. If the company is liquidated, you will get a refund. Go to one of our stores and they will be honest and explain it to you. We have advised all our stores and salespeople to be honest.


March 19, 2009
In response to: Robbins Brothers: Breaking It Down
Tracy commented:

Wow David, where do you work (As if it wasn't obvious). I have recently picked up a special order with Robbins Bros. and they have been completely honest and professional. I wouldn't think of going to a pawn shop....no matter what the name.


March 19, 2009
In response to: Robbins Brothers: Breaking It Down
DAVID GREGORY commented:

TRY A MORE TRUSTED NAME IN YOUR AREA. i HEAR DIAMOND DOCTOR THE OFFICIAL JEWELER OF THE DALLAS COWBOYS WILL TAKE OVER YOUR WARRANTY FREE OF CHARGE


March 18, 2009
In response to: Robbins Brothers: Breaking It Down
Lynn commented:

I am in process of placing an order in the Arlington, Texas store. What does this mean regarding my order that is due to be ready in May?


March 13, 2009
In response to: Robbins Brothers: Breaking It Down
Alan commented:

I'm in Chicago and have a $1000 webbing band on special order. The allotted time they gave is up and I was told it would e here today. I was just informed that the "


March 13, 2009
In response to: Robbins Brothers: Breaking It Down
Zoltan commented:

Anyone involved in the previous management should not be the owners of the new Robbins Bros. This potentially makes this a manipulation by the previous management to defraud the vendors and creditors. If Weston Presidio has the money to buy the company it means they also had the money to continue operations and pay their creditors. Did they choose to screw the creditors so they could take over the company? We need to send a message to these funds that operated Friedmans, Whitehall and Fortunoff that jewelry vendors will not continue to taken for suckers. Robbins Bros. should have new ownership or be liquidated.

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