Finlay Gets Some Good News, Some Bad

Two interesting things for all those who are watching Finlay:

 

– The first, from last week, is that the bankruptcy of Gottschalks could have some impact on the company, as Finlay ran many of their jewelry counters. And, indeed, Finlay is one of the top 20 unsecured creditors, owed $1.12 million.

– If in fact, Fortunoff gets (re-)sold, that could open the door to Finlay retaining the Lord and Taylor jewelry counters that had been assigned to Fortunoff. The original WWD article on the possible sale notes the following:

 

When it bought Fortunoff, NRDC said it could roll out Fortunoff jewelry and home shops with bridal registries inside Lord & Taylor, which it purchased in 2006. …. The deal with Finlay is set to expire at the end of this month, but negotiations are under way to extend the agreement. If Finlay doesn’t stay at Lord & Taylor, it’s possible NRDC seeks another operator for the jewelry departments or operates them on their own.

 

By the way, regarding Fortunoff: If it does get sold again, will it again go Chapter 11 beforehand? And how odd is it that the company’s new owners decided, according to WWD, that owning Fortunoff was a “distraction from its major retail holdings” less than a year after buying it?

JCK News Director