Jewelry Industry Bankruptcy Update (See Note)

NOTE: See update to Michael Beaudry item.

Here is the latest in what’s going on with all the myriad jewelry industry bankruptcies:

-         Henry Dunay had a big milestone, as it got its inventory valued and ready to be auctioned (auction date to be determined.)  The company’s fate is still to be determined, Dunay says, but he says there are several interested parties for the upcoming 363 sale.

-          Shane Co. expects to file a restructuring plan by the end of the year, and it is still in negotiations with the Creditors Committee, said attorney Caroline Fuller.

-         Michael Beaudry, and affiliated company Cornerstone Diamonds, has launched separate lawsuits against four companies – Wilson and Son in New York, the Swiss Watch Gallery in California. Carl Greve Jewelers in Oregon, and Bernie Robbins Jewelers – for “unpaid goods.”

[Update: Wilson and Son emails: “Wilson and Son never owed any money and the case was voluntarily dismissed on Nov. 12, 2009.”]

-         The temperature is being turned up a bit in the Finlay proceedings. The Unsecured Creditors Committee recently filed a motion asking to examine the books of Finlay and the company’s main creditors:

During the course of its due diligence, the Committee has learned information that it believes may give rise to significant claims against certain of those creditors. The claims relate primarily to the restructuring in November 2008 of the Debtor’s Debt Obligations.

Finlay and its main creditors have objected to the motion.

JCK News Director