Carlyle: Right Back Where They Started From?
I hear that one of the bidders in the Finlay auction, scheduled for Wednesday, is none other than the Cohen family, which formerly owned Carlyle (before Finlay bought it in 2005) They are in a consortium with Hilco and SimplexDiam. Obviously, they feel there is still considerable value in the Carlyle name and brands.
Interestingly, in an article from last week, Scot Congress, formerly of Congress Jewelers (which Finlay also owns), hinted he may also bid at the Finlay auction.
aak commented:
Sell it for millions, help run it to bankrupt. Then buy back cheap. Great if your a Cohen. Sucks if your one of the employees that lost all there severance and benifits and then there JOB.
soon unemployed commented:
Finlay Assets Said to Be Bought by Gordon in Bankruptcy Auction
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By Lauren Coleman-Lochner
Sept. 24 (Bloomberg) -- The assets of Finlay Enterprises Inc., the 122-year-old jewelry retailer, were sold in a bankruptcy auction to Gordon Brothers Group LLC, according to two people with knowledge of the situation.
Gordon Brothers bid 85.75 cents on the dollar for inventory valued at an estimated $116 million, said the people, who asked not to be identified because the information isn’t yet public. The Boston-based company will shut down 49 Finlay stores, and had a pre-existing agreement to close 55 other locations, one of the people said. The purchase requires the approval of bankruptcy court judge.
A representative for Gordon Brothers declined to comment and Finlay officials didn’t immediately return calls seeking comment. Finlay on Aug. 5 followed jewelers including Fortunoff Holdings LLC and Whitehall Jewelers Holdings Inc. in seeking protection from creditors after consumers slashed spending on non-necessities during the recession.
New York-based Finlay said in February that it would close the jewelry businesses it ran in department stores and concentrate on its Bailey Banks & Biddle, Carlyle, J.E. Caldwell, Park Promenade and Congress Jewelers standalone chains. Finlay had 476 locations at the end of its first quarter, including 107 standalone stores.
Finlay lost $28.7 million in the quarter ended May 2, after posting a $107.3 million loss in the year ended Jan. 31, according to regulatory filings. It had $754.3 million in sales last year.
The case is In Re Finlay Enterprises, 09-14873, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).
To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net.
Last Updated: September 24, 2009 09:19 EDT
Rob Bates commented:
The winner, apparently, is Gordon Brothers.
korsakov commented:
Any word on the bid results?
jp commented:
i say go for it guys. you ran the operation with
your smarts and your honesty, and ran it well.
i wish you the best of luck.
GoingYard commented:
Scot Congress already signed a lease to open a small retail store on Sanibel Island and has posted billboards opening October 2009
