Interview with the Christian Bernard Bankruptcy Trustee
Charles Forman, the court-appointed Christian Bernard bankruptcy trustee, generously took some time to talk with me today. Here is an update on what’s happening there:
Within the last week I’ve had discussions with several potential liquidators, and have gotten proposals about going out of business sales and the like. We hope to have the stores back open within the next ten days.
About the employees: The employees [generally got] paid every two weeks. The company shut down a day or two before the end of that pay period so the employees were not paid. I went to the bank and asked to create a mechanism by which the employees could be paid their back wages and the bank agreed. I’ve sent off the checks and hopefully that will take care of the open payroll.
There is also a handful of other issues, like the 401K plan. Those will get sorted out.
[He adds that the chain hopes to rehire the Christian Bernard employees for the liquidation sales.]
The consumer issues: The chain was shut down on December 26 at two or three in the morning. So many employees showed up for work with no place to go. So naturally you have a situation where you have repair items and special order items still in the store with no way of contacting people.
One of the first things the liquidators will do is to go back to those people who have contacted me, look at the store records, identify people who had items there and make arrangements to return their goods.
We want to try to do this in a way that’s as fair and as consumer friendly as possible.
He said that consumers with issues should write to rbrady@formanlaw.com or call his law firm at 201-845-1000. He said the firm hopes to get back to most people within a day or so, and if they don’t, they should contact him again.
One interesting thing that came out in the comments on my last post is whether the chain was owned by Reverend Sun Myung Moon’s Unification Church. The court papers don’t mention it, and Forman doesn’t know, but the BBC, Salon, and a slew of websites seem to think so.
Unfortunate Souls commented:
My Fiance and I are out $3K because CB took our depost on custom
order Hearts on Fire products the day before christmas, and when we
went to pick them up today, the liquidation guy said we are
probably going to be SOL and contact the attorney general. maybe he
can do something. We have our fingers crossed, but if anyone knows
how emotional women could be about weddings, try telling her tha
the special ring isn't going to happen even though you paid for
half of it! WTF
Brian commented:
I'm sad to hear that Christian Bernard could not keep afloat in
these economically difficult times. It was a good run while it
lasted. Maybe those that founded it can reform and try something
new with all thier years of experience in the jewelry field. That
would be my hope after all is said and done.
A1 commented:
Glad the Trustee is open to helping the consumers who have their
jewelry in the store! Plus glad to hear the employees will get
their pay! Bad business is bad business no matter who conducts it!
George commented:
To getwithit. The Unifiaction Church is a force for good. And
regardles what liars and fools like you say, it doesn't change that
fact one bit. In the future you shold try to limit your comments to
what you know for sure. Like teh saying goes: "Better to keep your
mouth closed and be thought a fool than to open it and remove all
doubt".
[Editor's Note: All right, guys. Let's not make this a debate on
the Unification Church. Thanks, Rob]
Homer commented:
Frankly, the moonie element is irrelevant now. No matter who may
have owned it before, the company is now in the hands of the
trustee and the courts. Rather than waste energy debating things
like this, any affected parties should get in touch with the
trustee immediately. Bankruptcy law can be tricky, and much of it
is counterintuitive (at least to average consumers) because of the
many competing interests the court has to balance. As a general
rule, though, sooner is better. Consumers who sit around waiting to
see what happens may end up with nothing.
getwithit commented:
owned by one of the unification church members? that explains a lot
now...and their unethical business behavior.
thereisnospoon commented:
I am a member of the Unification Church in good standing and have
been since the late 70s. It is commonly known within the church
that Christian Bernard Jewelers is owned by church members and not
the church itself. Would you say that the Marriott Hotel chain is
owned by the Mormon Church? Many of the businesses that are thought
to be "owned by the church" are in fact owned by church members.
Some of these businesses may have received angel investor funds
from other more successful church members and the owners of these
businesses may make large contributions to the church. The church
does not own these businesses. The church is merely a beneficiary
of the business owners. This is an ancient practice found in many
other religious and political movements throughout history. I hope
this clears up some misunderstandings.
MORPHEUS: "It is all around us. Even now, in this very room. You
can see it when you look out your window or when you turn on your
television. You can feel it when you go to work... when you go to
church... when you pay your taxes. It is the world that has been
pulled over your eyes to blind you from the truth."
NEO: "What truth?"
MORPHEUS: "That you are a slave, Neo. Like everyone else you were
born into bondage. Into a prison that you cannot taste or see or
touch. A prison for your mind."
