Finlay Gets Some Good News, Some Bad

Now, obviously finlay is not coming back. According to my Ops manager, they have signed with someone else (that it's official, but not being announced yet). We will probably know this week.

So NRDC fills up the Fortunoff warehouses to the ceilings while they stopped paying vendors (mid Jan), puts Fortunoff into Chapter 11 and then buys the stock for L&T counters!?! Prime example of how corporate greed works and the laws don't. They have treated their employees, customers, and vendors like dirt, and are stealing using the system. What they did to their vendors was theft and the Chapter 11 worked wonderfully to get them out of Fed and NYS WARN laws for their employees. Boycott L&T, Hudson Bay, and anything NRDC related, they have done this before and will do it again.

I've had some things shipped to me (not jewelry) and one ops manager has already confirmed it because someting was overheard that shouldnt have been. Signed, Finlay Again Soon

Finlay is not staying at Lord and Taylor. L&T asked Finlay to stay on until April, which is when they will "unveil" "their" jewelry "collection" If the goods they are able to get are of the same caliber that Fortunoff brought in, then they're not going to do too well. If it is nicer merchandise you need to still remember, L&T is not a jeweler and doesn't know how to run a jewelry business...it won't be like it was woking for Finlay! To: "Formerly Finlay/Formerly Fortunoff" etc. your hours may have increased right now...but if you can't make big sales for L&T then I bet you will see your hours and/or your job cut! Remember you were transitioned from Finlay at a higher pay rate than most L&T employees get. They can replace you very easily with some one who makes $7 and hour and at half the commission you make...or maybe they'll hire them like they do in the shoe departments commission vs. drawer. Remember You are replaceable!!!

As far as I heard Finlay just extended their lease with Macys for another 2 years.

Is Finlay likely to stay in the Macy's stores Finlay is currently running, and for how long?

So far, the # of hours has increased, not decreased. I have also been told by one of my L&T execs that they are still in talks with Finlay. Nothing will be announced until at least Monday 2/23 because thats when the court rules on the sale of Fortunoff merchandise. It would just really be nice to know at this point.

Sources at Lord and Taylor have indicated that they will be receiving jewelry merchandise from several vendors that already deal with Finlay. They plan to just "put"it in cases vacated by Finlay. the problem here is that Lord and Taylor is not a jeweler/jewelry company and has no clue how to run a jewelry business.It's not like selling other goods like clothing and makeup... Lord and Taylor expects Finlay employees transition to them like a bunch of sheep! Given the harsh scheduling guidelines that L&T has just implemented and the fact that they do not have the knowledge and organization to run a jewelery business...Finlay employees would be well advised to avoid this "train wreck!" If they stay at L&T they will just become bodies behind showcases. Ability to sell and experience in the jewelry business will mean nothing, with the miserable scheduling that L&T expects them to work.Don't be surprised that you won't make any money, your hours will be cut, and commission cut eventually if you stay at L&T!

Just imagine how it is for us who converted from finlay to fortunoff! Now supposedly I work for L&T??!! I have worked for 3 different companies in the past 6 weeks! L&T still wont tell us anything! L&T did buy the fortunoff stock we had in the store. They bid today with the court. Who knows who the heck I'll be working for next!

Finlay's stay at Lord and Taylor was just extended from the end of Feb now to the end of March...leaving the employees of Finlay hanging again! Wondering if they have a job or not!A small number of Finlay branches at &T have received merchandise...yet they're shipping out old good from other branches to corporate distribution center. The NY group office for Finlay has just lost it's Director of stores and most of the staff, regionals as well. So if Finlay is hoping for a comeback to L&T...how can they do it with most of their"infrastructure" disappearing?

Finlay's L/T lease expired January 31st, according to Finlay's documents. The 47 stores generated $44 million in sales in 2007, above Finlay's 2007 average sales per department ($891K). I would think Finlay would want the counters back, especially if L/T throws in some type of signing bonus. ALSO: Remember the division collapse and central merchandising efforts Macy's announced earlier this week? Macy's East AND West both stock and operate their own counters (very thoroughly). With the elimination of ALL of the Macy's divisions that Finlay operates...in the end it comes down to Macy's having the cash to stock all of the Macy's counters (316 total listed on 2007 report, 94 definitely transferring to Macy's...so Macy's would need to stock about 200 departments...so maybe around $100 million in inventory, plus trim and salespeople? Maybe less as they have less diamonds and more color/gold/pearls). This would leave Bloomingdales (34), Bon-Ton (163), and Dillard's (89) if Gottschalks (38) and Lord and Taylor (47) are eliminated. Makes you think, doesn't it?

So...who is running the counters in the Lord and Taylor stores, particularly the flagship? Finlay, I assume? Wasn't Finlay's lease up at the end of January? Of course Finlay mentions NOTHING about the L/T fiasco in their press release of sales...

The latest......... All of the L & T's that had not yet been converted to Fortunoff have been told to send back all displays etc... to Fortunoff. They will not be converted from Finlay to Fortunoff.

Jewelgal, no real news to report. For the latest on Fortunoff, see the front page of jckonline.com. Finlay said it could be facing a liquidity crunch in December, but has not filed anything. As far as Zale, last time I spoke with them they wouldn't comment on possible store closings. However, it seems like you got some of your info from a viral email that I wouldn't put a lot of stock in. See here: www.jckonline.com/blog/870000287/post/920036892.html

Hi Rob- I am still hearing "rumors" about an impending Finlay bankruptcy and also rumors about Zales closing more stores (100+) and closing Piercing Pagoda. Do you have any more info on this?

Today's NY Post: www.nypost.com/seven/01312009/business/fortunoffs_luck_at_end_152847

Quote From Today........ "Now L & T is seeking to get Finlay to resume merchandising and operating the jewelry counters." From WWD

Speaking of which, "Former Fortunoff Insider," today's Wall Street Journal (tinyurl.com/b3chaf) contains this sentence: "Fortunoff is up for sale and could re-enter bankruptcy protection if a buyer isn't found, according to people familiar with the company."

There is nothing but rumors circulating around Fortunoff. No one has any answers including what happens to the pensions some of us had to leave behind.

Update copied and pasted from the Fortunoff website (looks promising for Finlay): Our 57th Street store has closed. If you require any repairs or service to your fine jewelry or watches, our expert staff can help you at our Westbury, White Plains, Wayne, Woodbridge or Paramus locations. For your convenience we will mail your merchandise back to you once the repair is complete. We can also accept any merchandise returns for merchandise at any of our other locations. We apologize for any inconvenience this may cause.

I thought the agreement was to lease the space to Fortunoff? Why would Lord and Taylor need to buy anything or pay any money? Anyways, on fortunoff's website (link: www.fortunoff.com/content.jsp?pageName=info57thclosing): "We're Moving! Our 57th Street store has closed. We are currently setting up our new location at Lord & Taylor on 5th Avenue and 39th Street. We will re-open at Lord & Taylor on February 1st." So I assume we'll know something in a week.

Fortunoff Insider (who I would be happy to talk to in private: rbates at reedbusiness.com) ... Was what happened last year (the first sale) a shock to people? It seems the trade had little indication.

The Fortunoff 57st store was closed in anticipation of the move into L@T. No one at Fortunoff knew anything until the WWD article broke. Best knowledge is that L@T seems reluctant to pony-up the upfront $$ to merchandise the Fortunoff counters in their stores, where Finlay was a consignment arrangement. We are hoping for the best, but expect the worst. Alan is rolling over in his grave.

Is the Fortunoff store in NYC open today?

What about the plans to close Fortunoff's (new) location in NY and move it into L and T's flagship store (replacing Finlay's jewelry sales floor)? It was supposed to be done by February and we haven't heard anything since the initial announcement in November.