Market Developments

Save E-mail Print Most Popular RSS Reprints

After sales plummet, David Webb files Chapter 11

By Michelle Graff
June 25, 2009

New York--David Webb Inc., a 61-year-old family-owned retail and manufacturing jewelry operation with stores in Manhattan and Beverly Hills, Calif., is the latest industry player to file for Chapter 11 bankruptcy protection, court papers show.

According to documents filed on Tuesday in U.S. Bankruptcy Court for the Southern District of New York in Manhattan, the company's financial troubles began in 2009 when it experienced an increase in operating costs coupled with a drop-off in sales due to the economic crisis that resulted in "substantial cash flow difficulties."

According to court papers, David Webb Inc.'s gross revenue from sales plummeted to less than $5 million for the fiscal year ended June 30, 2009, compared with $13.25 million for the fiscal year ended June 30, 2008.

The Silberstein Family Partnership owns 100 percent of the stock of David Webb. The partnership consists of Nina Silberstein, general partner, and the Arnold Silberstein Unified Credit Trust (each one owns 36.5 percent); and Stanley and Sharon Silberstein, each with 13.5 percent ownership.

The decision to file for Chapter 11 came on the heels of a June 18 board of directors meeting attended by Nina, Stanley and Sharon Silberstein in which they unanimously passed a resolution stating that bankruptcy was the best option for the struggling company.

"The corporation has encountered serious financial difficulties in connection with its operations and is unable to make payment of the necessary debts and expenses being incurred by it in such operations, and in the opinion of its directors and officers, it is in the best interest of the corporation and its creditors that the corporation reorganize pursuant to Chapter 11 of the United States Bankruptcy Code," the resolution states.

Founded in 1948 by David Webb and Nina Silberstein, David Webb operates a retail store on Madison Avenue in Manhattan, where, according to the company's Web site, shoppers are invited to have a glass of champagne or cappuccino while they browse. The company also operates a second store at the upscale Regent Beverly Wilshire Hotel in Beverly Hills, Calif.

In addition, David Webb also has a factory where it produces its own jewelry.

In the bankruptcy filing, the company estimates that it has between 50-99 creditors, assets of $10 million to $50 million, and liabilities totaling $1 million to $10 million.

Its top three unsecured creditors are L. Friedland and M. Friedland of New York, owed $484,826 (the company's landlords, with whom David Webb is also in separate litigation with, according to the petition); Frank Mastoloni and Sons Inc. of New York, owed $333,700; and Dov Schwartz Inc. of New York, owed $165,553, according to court documents.
Save E-mail Print Most Popular RSS Reprints
Post a Comment
* Required field
* Author:
* Comment:
 

More Market Development News

Holiday Countdown Series Staffing
Short-handed this holiday? Get creative

If you’re like other retail jewelers, you have fewer hands than usual to help this holiday season. We found some ways for small-staff operations to think big through incentives and teamwork. Read More

JA offers grant fund for state association partners
Jewelers: Win Platinum Points over the holidays
Rose Jewelers CEO Rosenblatt dies
CJA, WJA Midwest announce holiday party
More Market Development News

More Like This

Design Portfolio

advertisement

Video

Small multi video player located on right rail of NJN site

advertisement

Sponsored by:

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.
Newsletters
Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.
Reader Connect
ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.
Jewelry Yellow Pages
Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.
Classifieds
Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.
NJN Customer Connect
CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.

advertisement