On June 24, Tara Jewels LLC, a New York City–based wholesaler formerly known as Fabrikant-Tara, filed for Chapter 11 in Southern District of New York bankruptcy court.
Also filing was Tara Jewels Holdings, which owns 100% of the company. Tara Jewels Holdings is, in turn, owned by Indian company Tara Jewels Ltd., according to a statement of ownership submitted with the filing.
Tara Jewels Holdings’ bankruptcy papers claim from $0 to $50,000 in assets, and Tara Jewels claims $500,000–$1 million in assets. Both companies list $10 million–$50 million in liabilities.
The resolution authorizing the two bankruptcies was signed by Rajeev Sheth, Tara’s chairman and managing director.
It says that before the filing, the board “considered the financial and operational aspects of the company … [and] has reviewed the historical performance of the company, the markets for the company’s products and services, and the current and long-term liabilities of the company.”
In November 2018, creditors initiated an insolvency proceeding against Tara Jewels in India. The Indian company could not be reached for comment.
Richard T. Faughan of Kroll, a division of Duff & Phelps, has been appointed the company’s restructuring officer.
The company’s attorney, Ronald J. Friedman of SilvermanAcampora LLP, did not respond to a request for comment.
Tara Jewels was known as Fabrikant-Tara until 2015, when chief executive officer Matthew Fortgang left the company. The previous year, the company had introduced a jewelry line with designer Zac Posen.
(Image courtesy of the Southern District of New York)