Financial Reporting

Save E-mail Print Most Popular RSS Reprints

Bankruptcy judge sets date for Finlay finale

By Michelle Graff
August 21, 2009
An auction for the assets of bankrupt retailer Finlay Enterprises Inc. is scheduled for Sept. 23 at 10:00 a.m. in the law offices of Weil, Gotshal and Manges LLP on Fifth Avenue in Manhattan.

New York--An auction for the assets of bankrupt retailer Finlay Enterprises Inc. has been set, with Gordon Brothers Retail Partners LLC authorized as the stalking-horse bidder, court documents show.

In a ruling dated Aug. 20, U.S. Bankruptcy Judge James Peck for the Southern District of New York scheduled a Sept. 23 auction for 10:00 a.m. in the law offices of Weil, Gotshal and Manges LLP on Fifth Avenue in Manhattan.

Any objections to the sale must be sent to Finlay, its attorneys, the U.S. trustee in the case, as well as attorneys for the unsecured creditors committee and others by Sept. 14 at 5:00 p.m., court documents state.

According to court documents, a sale approval hearing is set to follow on Sept. 25 at 10:00 a.m. in federal court.

In the same ruling, Peck authorized Finlay to enter into the stalking-horse agreement with Boston-based liquidation firm Gordon Brothers.

In its role as stalking-horse bidder, Gordon Brothers' bid creates a baseline for all other bidders at the auction, guaranteeing that the proceeds of store-closing sales will equal at least 64.75 percent of the aggregate cost value of the merchandise plus an amount that will cover all expenses, such as payroll and advertising costs for the sale events, according to court documents.

A 78-page stalking-horse agreement filed with the court states that Gordon Brothers began assisting Finlay with final clearance sales in all of Finlay's more than 500 leased department store locations around March 20.

Around this same time, court papers state, Gordon Brothers also launched "promotional sales" at 38 Bailey Banks and Biddle stores in 21 states; 10 Caryle and Co. stores in six states; all four Congress Jewelers stores, which are all located in Florida; three Pennsylvania J.E. Caldwell and Co. stores; and the Park Promenade Jewellers in Palm Beach Gardens, Fla.

The possibility of Finlay assigning leases or contracts for its stores exists, but those agreements have to be disclosed as part of the auction procedures, court papers said. Otherwise, Gordon Brothers will continue store-closing sales at Finlay's freestanding locations, as well as a sale of the assets at the company's distribution centers and storage locations, court papers show.

Stung by the lack of credit and downturn in consumer spending brought on by the recession, Finlay filed for Chapter 11 bankruptcy protection on Aug. 5.

The New York-based chain once operated a strong business running the licensed fine-jewelry departments of stores such as Macy's and Bloomingdales, plus its Bailey Banks and Biddle, Caryle and Co., Congress Jewelers, J.E. Caldwell and Co. and Park Promenade Jewellers stores.

Though it backed out of the licensed fine-jewelry department business earlier this year with an eye on strengthening its standalone brands, Finlay could not weather the economic downturn.

After unsuccessfully trying to orchestrate a sale earlier this year, Finlay opted to file Chapter 11 and liquidate its assets.
Save E-mail Print Most Popular RSS Reprints
Post a Comment
* Required field
* Author:
* Comment:
 

Financial Reporting

Zale slapped with shareholder class-action suit

A shareholders' class-action lawsuit has been filed against Zale Corp., its chief executive officer and three former executives, claiming the Irving, Texas-based, 1,931-store chain deliberately deceived investors. Read More

Birks and Mayors mid-year sales down 19 percent
3Q sales down 4 percent at ShopNBC
Retail sales remain flat in October
Richemont's six-month sales fall 15 percent
More Financial Reporting 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