Lazare Still Unable to File Financials, Anticipates Significant Sales Drop

On Aug. 30, Lazare Kaplan again filed a statement with the Securities and Exchange Commission that said it was unable to file a full financial report.

However, the company did disclose that it anticipates a net sales drop of 23 percent in the fiscal year 2012. Lazare Kaplan expects net sales to total $105.7 million, compared to $137.8 million last year. The company blames “a decrease in rough trading volume” and “uncertain economic conditions” in the diamond and jewelry industries for the sluggish sales.

The New York diamond wholesaler and manufacturer hasn’t filed financial reports since fiscal year 2009, which led to its stock’s delisting from NASDAQ.

Lazare Kaplan is still in litigation with the Antwerp Diamond Bank and parent company KBC Bank over its $500 million claim that the companies schemed to steal its diamonds. The banks filed a motion in April to dismiss Lazare’s complaint, but there has yet to be a ruling. Lazare Kaplan stated the “continued existence of this litigation and the remaining material uncertainties have a significant detrimental effect on the company’s ability to transact business in the ordinary course.”

Lazare Kaplan also reported the death of director Lucien Burstein, who passed away on Aug. 12. Burstein joined the company’s Board of Directors in 1984 and has served on the audit and compensation committees of the board, as well as serving as the company’s secretary.

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