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Christian Bernard obtains trustee, plans to liquidate

January 16, 2009

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Newark, N.J.--A trustee has been appointed to head bankrupt Christian Bernard Stores Corp., and the chain will move forward with liquidation, according to a news release issued on Friday.

The U.S. Justice Department named Charles Forman, a senior member of the Paramus, N.J., law firm Forman Holt Eliades and Ravin LLC, as the trustee in the case.

Forman is scheduled to appear before the U.S. Bankruptcy Court for the District of New Jersey in Newark, N.J., today to present plans for the complete liquidation of the company's assets and for permission to re-open all the chain's stores early next week.

Secaucus, N.J.-based Christian Bernard filed for Chapter 7 bankruptcy the day after Christmas, citing a "precipitous fall in consumer spending" that led to the chain's retail shops "underperforming" and a lender advising the chain it may not renew its current lines of credit, according to the voluntary petition filed in U.S. Bankruptcy Court in the case.

Chapter 7 bankruptcy typically leads to liquidation, as opposed to Chapter 11 bankruptcy protection, which frees a company from the threat of creditors' lawsuits while it reorganizes.

According to the petition, Christian Bernard possesses estimated assets of $10 million to $50 million but also has an estimated $10 million to $50 million in liabilities on its books.

The chain estimates that funds will be able to pay its unsecured creditors, which number between 200 and 999 and include companies such as Dalumi Diamonds, Hearts On Fire and Leo Schachter Diamonds, the petition states.

Christian Bernard operates 15 stores in eight states, including Connecticut, Illinois, Maryland, Missouri, North Carolina, New York, Pennsylvania and Virginia as well as in Washington, D.C., according to National Jeweler's 2008 State of the Majors report.

The chain is listed as No. 38 on National Jeweler's Top 50 list of the largest jewelry chains in North America by store count.
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