Samuels Jewelers, Inc., the eighth largest U.S. retail jewelry chain, on Aug. 22 submitted its bankruptcy reorganization plan to the federal bankruptcy court in Delaware. The plan anticipates the company’s emergence from bankruptcy “post Christmas.”
Samuels filed for Chap. 11 bankruptcy earlier this month, saying it was “over leveraged” with $78 million in debt built up in the past five years. It closed 10 of its 123 stores and slashed 50 jobs, but said it would continue to conduct business as usual.
Samuels’ plan provides for converting significant debt to equity in order to create a new capital structure and a much-improved balance sheet, to again enable growth and profitability. The company also said it will work closely with a credit’s committee, comprised of seven of its largest creditors and formed Aug. 19, to complete the reorganization.
Chapter 11 of the U.S. Bankruptcy Code allows a company, like Samuels, to continue to operating and managing its assets and avoid liquidation while it reorganizes and seeks to satisfy creditor claims.
Samuels operates specialty retail jewelry stores under the names “Samuels,” “C&H Rauch,” “Schubach,” and “Samuels Diamonds” in regional shopping malls, power centers, strip centers and stand-alone stores across the country. As of August 22, it had 113 retail jewelry stores in 19 states. The Company also sells jewelry online at SamuelsJewelers.com.