Lord & Taylor reportedly has received court approval for its purchase of Fortunoff, the famed furnishings and jewelry retailer that filed for Chapter 11 bankruptcy protection in January.

Lord & Taylor, owned by hedge fund NRDC Equity Partners, says it wants to make Fortunoff a national chain and open up Fortunoff boutiques in its stores.

The Lord & Taylor acquisition comes as bad news for Finlay, the leased-jewelry-department operator that previously ran boutiques in Lord & Taylor. In a statement, the company said it had received notification from Lord & Taylor that its license agreements will not be renewed. It will close 47 Lord & Taylor locations at the end of fiscal 2008. In fiscal 2007, the Lord and Taylor locations generated approximately $44 million in revenue for Finlay, the company said.

Finlay did not return a request for comment from JCK.