Winning bid emerges for bankrupt Alpha Omega
January 24, 2008
Boston—A consortium of three companies has emerged as the highest bidder in an auction for the assets of Alpha Omega Jewelers,
National Jeweler has learned.
The deal is final pending the approval of U.S. Bankruptcy Court Judge William C. Hillman and barring any objections from Alpha Omega's unsecured creditors.
Boston-based Tiger Capital, Fort Lauderdale, Fla.-based The Gordon Co. and SB Capital of Great Neck, N.Y., entered the winning bid.
If the court finalizes the deal, the three companies will operate Alpha Omega for an interim period before turning the company over to new owners.
The amount of the sale was not disclosed.
"We believe that we've arrived at the best outcome possible in this situation," Alpha Omega Chief Restructuring Officer and Consensus Advisors LLC President Michael O'Hara said in a statement. "I'm very pleased that we got such terrific operators and retailers for the Alpha Omega stores. It's good to know our associates will have substantial opportunities for future employment, first with the joint venture that will acquire the inventory and thereafter with a world-class jewelry retailer."
Kairos Capital Partners of Westwood, Mass., was instrumental in bringing together the jewelry retailer and the consortium.
In addition, a news release sent to
National Jeweler states that a well-known, but undisclosed, luxury jewelry retailer has agreed to assume two of the company's leases, subject to court approval. The consortium is working with other retailers that could potentially assume Alpha Omega's other two leases.
Alpha Omega filed for Chapter 11 bankruptcy protection on Jan. 2 following a series of bizarre events.
On Dec. 17, as Alpha Omega struggled to stay afloat, owner Raman Handa abruptly left the United States for India, where court papers state he traveled to seek medical treatment.
His departure came as a surprise to his business associates and employees.
Following his departure, court papers showed an estimated $6.6 million in missing inventory.
Editor's note: For earlier developments in this story, see
Inventory missing but sales continue at Alpha Omega.
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