A group of diamond and jewelry companies has filed an involuntary Chapter 7 petition against Leo Robbins & Sons, a Philadelphia retailer that is also known as Robbins Diamonds and Robbins 8th and Walnut, court papers show.
The company has 20 days to contest the filing. Involuntary Chapter 7 petitions are often converted into voluntary Chapter 11s in bankruptcy proceedings.
According to its website, the company currently has four stores. A message left at Robbins’ corporate headquarters was not returned at press time.
The stated allegation in the petition is "the debtor is generally not paying such debtor’s debts as they become due."
Petitioners include Leo Schachter Diamonds, Salant Group, Sandberg & Sikorski Corp. (d.b.a. A Jaffe), and two Israeli companies, A.D.R. Kropveld Diamonds and Yerushalmi Brothers.
"Suffice it to say that petitioning creditors felt that they were more than patient, and reached the point that they felt that they had to take this action," Ian Winters of Klestadt & Winters, attorney for several of the creditors, told JCK.