Who Will Buy ... Whitehall's?
June 24, 2008
The news that Whitehall plans to liquidate if it doesn’t find a buyer — or gets someone to fund its reorganization — puts me in mind of a conversation with an attorney representing Friedman’s a few months ago. We were about to run a story saying the chain would close all its stores, and I asked him if he was 100% sure it was liquidating.
He replied, “Know of anyone who wants to buy 300 jewelry stores?” (And of course, the irony is the only serious bidder was Whitehall.)
So here we are again … and the question is, again: “Know of anyone who wants to buy 300 jewelry stores?”
Whitehall does seem to be trying. Its bankruptcy papers note its investment firm “contacted 100 buyers, including strategic and financial buyers. Although several parties expressed interest, none were able to submit a final proposal at this time. Debtors are hopeful there will be a Going Concern Bid submitted at or prior to the [July 18] auction.”
We’ll see. It’s worth nothing, that amid all that went wrong at Whitehall’s, there are likely some pretty good stores in the 300 it’s selling, including the 78 it bought from Friedman’s, which were all said to be profitable. Yet, some good jewelry businesses are now on the endangered list.
On a brighter note, many will tell you that these kind of convulsions are ultimately healthy, and the jewelry business will emerge from all this leaner and stronger. But watching it up close and in slow motion, it’s pretty ugly. And we may not emerge from this down cycle for quite a while.
Posted by Rob Bates on June 24, 2008 |
Comments (23)
August 1, 2008
In response to:
Who Will Buy ... Whitehall's?1stgroupcut commented:
As part of 1stgroupcut, all I can say is I'm glad I don't have to
wait until something happens. Mgmt told too many lies and Whji's
name change will be a problem with vendors. Will be interesting to
see how they handle this.
August 1, 2008
In response to:
Who Will Buy ... Whitehall's?IY commented:
Board is immediatly dissolved as well. Of course I am hoping all of
this is false. I will make a few more calls to confirm.
August 1, 2008
In response to:
Who Will Buy ... Whitehall's?IY commented:
Unofficial, but word has the Gordon liquidation company as buying
out the company. I hope this is not the case.
August 1, 2008
In response to:
Who Will Buy ... Whitehall's?WH1 commented:
What's the outcome from the auction Rob?
August 1, 2008
In response to:
Who Will Buy ... Whitehall's?nooneimportant commented:
For what it's worth, anyone researching Gitanjali and their
acquisition history over the last 2 years can tell they're serious.
Their chairman in an interview admits to a growth plan based on
mergers and acquisitions. With Rob reporting that the process was
going late into the evening, it tells me there is some serious
bargaining and negotiating happening. It's what they do. The whole
situation stinks for all WH associates, but hopefully there is
reason for optimism.
August 1, 2008
In response to:
Who Will Buy ... Whitehall's?me again commented:
I will be so greatful when I can wake up in the morning without
knots in my gut. Someone some where could give us an idea of what
is going on and what our fate will be? God Help us all! Please let
us know something, anything as soon as you you hear Rob. I
appreciate you help. This is such a creul way to handle the
employees...maybe, maybe not, on again off again hope...whats that?
its criminal
July 31, 2008
In response to:
Who Will Buy ... Whitehall's?IY commented:
I just don't answer the phone. Use any vacation you have!
July 31, 2008
In response to:
Who Will Buy ... Whitehall's?N/A commented:
Is this Gitanjali Gems thing for real or just a ruse to get our
hopes up?
July 31, 2008
In response to:
Who Will Buy ... Whitehall's?jewelrygirl commented:
Anyone know who will run the GOB sale?
July 31, 2008
In response to:
Who Will Buy ... Whitehall's?frustrated commented:
IY, I couldn't agree more. So much so that I left early for the day
(@w-hall)
July 30, 2008
In response to:
Who Will Buy ... Whitehall's?IY commented:
The current upper management squad was set up from the begining for
this. All of these former Fred Meyer Jewelry employees are golden
parachuted out the door. I feel bad for the average joe jewelry
employee (me) at store level. Bail out now before your competition
is full for the upcoming holidays.
July 30, 2008
In response to:
Who Will Buy ... Whitehall's?plptime commented:
Been out of the country for a bit so i am a bit behind on info, but
if the current management team headed by mike don does not come up
with backing, it is over for all the stores. No one is interested
anymore. Good luck at auction!
July 25, 2008
In response to:
Who Will Buy ... Whitehall's?peace out commented:
has anyone heard anything recently? I know that their was a big
court date yesterday, july 24th. I am sure that liquidation will
happen also, especially now that diamond prices are going up and
ther is a strike in africa. i heard that Gitanjali dropped out of
the bidding. I also know when i am being lied to and that Absolute
Brilliance recall by the 29th of July for "inventory" was a lie.
July 24, 2008
In response to:
Who Will Buy ... Whitehall's?helping others commented:
A fine jewelry store is hiring a quality sales staff (GIA TRAINED)
in Las Vegas @ the Vanishine, if you are interrested in relocating,
let me know and I'll get a contact name and number.
July 21, 2008
In response to:
Who Will Buy ... Whitehall's?FRUSTRATED commented:
All of the comments above stand true. We at Whitehall are given
little info. As tenured managers, you'd think the other great co.'s
would be looking to grab us. Whitehall's jewelry (by the way)is not
low end. The store's appearance IS!!! Help those really talented
people.
July 7, 2008
In response to:
Who Will Buy ... Whitehall's?Mall Jewelry Boy commented:
The only reason I can think that Gitanjali would want Whitehall,
and did not want Friedman's, is that Gitanjali does not want any
low-end or credit jewelry chains. They shifted Samuel's quality and
selection more upscale, reworked Samuel's in-store signage and
advertising to be more "classy", and had commented they were more
happy with Rogers type of clientele. It will be interesting to see
if Gitanjali just wants the leases to the best
Whitehall/Lundstrom/Friedman's/Crescent stores and will re-brand
them Samuel's. Whitehall has a bigger national footprint, but
there's a lot of baggage that comes with the Whitehall nameplate.
Plus, Whitehall never even got around to changing the nameplates on
the Friedman's and Crescent stores! But still, Gitanjali is in a
position to get a really great bargain-basement price on the
stores.
July 6, 2008
In response to:
Who Will Buy ... Whitehall's?Rob Bates commented:
Well, all the pessimists -- which, I'll admit, included me -- may
be proven wrong with the news today that Gitanjali, owner of the
aforementioned Samuels and Rogers chains, may buy Whitehall's.
There aren't many people who might purchase Whitehall, but
Gitanjali is certainly top of the list. It is a welcome sign that
at least one company still has faith in U.S. retail. And perhaps
above commenter "nooneimportant" is someone important after all. I
am a little curious, though, why Gitanjali is looking at Whitehall
and didn't seem interested in Friedman's ...
July 1, 2008
In response to:
Who Will Buy ... Whitehall's?nooneimportant commented:
All the USA companies are out of the running to acquire Whithall,
most likely. I would be looking overseas for the potential buyers
-- remember Samuels and Rogers? India is making inroads by taking
advantage of situations like this.
June 26, 2008
In response to:
Who Will Buy ... Whitehall's?Beenthere commented:
Gone and Homer are right. There will be a total liquidation and
Whitehall will no longer be with us in 2009. I can't imagine any
other scenario. It may be a short while before the sale begins, but
I am certain that it is coming. Jewelman, that is sage advice that
you have for the employees. They need to realize that there is life
after Whitehall. In fact, they may find that the demise of the
company turns out to be one of the best things that could have
happened to them. I know that no one who worked for Whitehall will
miss the pressure and rumors. Good luck to everyone!
June 25, 2008
In response to:
Who Will Buy ... Whitehall's?Jewelman commented:
There was a time when Whitehall served a large and growing public,
but their rush to overexpansion along with greed and unethical
behavior on the part of some corporate officers brought about the
result that we are now seeing. It is unfortunate for the many good
people that are still working for Whitehall, and that have been
ther for many years, but the very best thing that they can do is
apply with one of the many fine companies that are hiring even
during tough economic times and get on with their lives. They must
realize by now that the company for whom they have been working is
not going to last for another Christmas.
June 24, 2008
In response to:
Who Will Buy ... Whitehall's?Homer commented:
I'm afraid I have to agree. It's hard to imagine any of the big
boys wanting to pick up 300 (or even 78) stores in the current
climate. Low-end jewelry is not a growth field right now. I think
the most likely outcome is a pure liquidation.
June 24, 2008
In response to:
Who Will Buy ... Whitehall's?GONE commented:
There will not be a buyout of any kind, I think. The merchandise is
similar to Friedman's and the stores are small, cramped, and in
some cases, without toilet facilities. Neither zales or Sterling
will touch this. You may have a bidding war between Great American
and Gordon BRos. but the end result will be the same...liquidation
90 days from the "auction" date. Good luck to everyone out there.
As one of the last Friedmans stores, I know how everyone out there
feels.
June 24, 2008
In response to:
Who Will Buy ... Whitehall's?Mall Jewelry Boy commented:
I'd say the better performing stores would be good for Sterling to
acquire to launch JB Robinson or at the very least get the top
stores to reinforce their regional brands. Unfortunately, Sterling
has already stated numerous times that an acquisition is less
likely in this economic climate, and the regional brands are
performing the worst out of all the brands (30 are being closed
this year). However, looking at the malls in my area, there are
already Kay and a regional brand in most of the malls Whitehall is
in, and Whitehall's locations are much smaller.
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