Finlay Enterprises announced today that it and several of its wholly-owned subsidiaries have filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in Bankruptcy Court for the Southern District of New York.
Finlay, in collaboration with its financial advisor, Alvarez & Marsal, has decided to pursue an auction and sale process in order to maximize value for stakeholders. Finlay also announced that it has entered into an agency agreement with Gordon Brothers Retail Partners, pursuant to which Gordon Brothers will act as the Stalking Horse bidder in connection with an auction that the Company intends to conduct for its business and assets. Finlay has filed a variety of motions with the Court that, with Court approval, will allow it to continue to conduct business in the ordinary course without interruption. The Company’s bankruptcy attorneys are Weil, Gotshal & Manges.
As is customary with public companies that have filed for chapter 11, Finlay expects the OTC Bulletin Board to temporarily halt trading in the Company’s stock pending receipt of additional information on the Company’s financial condition and reorganization plans
Arthur E. Reiner, chairman and chief executive officer of Finlay Enterprises, commented, “Although today is a difficult day for all of us at Finlay, we have arrived at this decision after careful analysis and believe it is necessary given the continued challenging economic environment that has resulted in our current business condition. As we consider the next steps for our Company, we thank our employees, vendors and customers for their ongoing support.”
Accrding to Finlay, the number of its locations at the end of the second quarter ended August 1, 2009 totaled 182, including 67 Bailey Banks & Biddle, 34 Carlyle and four Congress specialty jewelry stores and 77 licensed departments with The Bon Ton.