Paramount Jewels has placed the winning bid for A. Jaffe’s business and brand, according to court papers filed on July 13 in New York bankruptcy court.
Paramount Jewels plans to run the company as a separate division, with Sumay Bhansali remaining CEO, Sam Sandberg staying chairman, and the company’s employees continuing on.
Paramount Gems, a company associated with Paramount Jewels, had submitted a winning bid for the company in an auction held in early May. However, that bid was withdrawn later that month after Judge Sean Lane declined to approve it.
This new bid will also need to be okayed by the bankruptcy court on July 25, though it has been endorsed by the court-appointed Chapter 11 trustee, Richard Levin.
Paramount Jewels was the only bidder for the company’s assets and agreed to pay $5.2 million for the company, less than its prior $8 million bid. However, unlike its prior bid, this new sale does not include all of the company’s assets.
The new sale encompasses all of A. Jaffe’s intellectual property and customer accounts, as well of most of its accounts receivable and inventory. However, certain items of inventory and accounts receivable have been set aside for individual sale.
Trustee Levin has already sold off several items of inventory to four local companies for a total of $1.2 million, court papers show. Levin tells JCK that there are remaining items of A. Jaffe inventory still to be sold.
A. Jaffe, a well-respected New York City jewelry manufacturer and brand founded in 1892, filed for Chapter 11 on Feb. 26, along with related companies Firestar Diamond and Fantasy, Inc., following revelations of legal problems from former owner Nirav Modi.
A statement from A. Jaffe quoted Levin saying, “These sales were the result of the dedication and hard work of the entire A. Jaffe family. I thank them for their wonderful efforts to preserve this venerable brand.”
The statement added: “The entire A. Jaffe team expresses its heartfelt gratitude to all its employees and all its retail partners that have remained with A. Jaffe during this difficult period. This spirited loyalty has made the sale possible and assured the promising future of A. Jaffe.
“Working with the Paramount Jewels team, A. Jaffe’s direction for 2018 and 2019 will focus on sustained marketing initiatives to elevate the strength of its consumer brand,” it added.
(Image courtesy of A. Jaffe)