Dallas-based jewelry retailer DGSE Companies has landed on S&P Global Market Intelligence’s list of most vulnerable U.S. public retail companies.
Topping the list is another retailer that sells jewelry: Sears Holdings. Bon-Ton Stores came in fourth.
S&P’s ranking gives DGSE a 14.87 percent probability of default this year. Sears Holdings was assigned a 23.84 percent chance.
DGSE, which has undergone many changes recently in its executive suite and at the board level, signed a nonbinding letter of intent with Elemetal on April 19 to acquire the tangible personal-property assets of Elemetal and Elemetal Recycling. When the sale is completed, the two companies will receive $19.8 million, which includes $3.8 million in obligations owed by DGSE to Elemetal.
Elemetal currently holds an approximately 49 percent interest in DGSE.
DGSE sells jewelry, watches, and coins through its Charleston Gold & Diamond Exchange and Dallas Gold & Silver Exchange operations. It also owns vintage watch wholesaler Fairchild International.
(Image courtesy of DGSE)