January 2008
Jade to Be Used for Olympic Medals
For the first time, a material other than metal will be used for medals awarded to athletes for the Olympic Games, the publication China View reports.
Jade from China’s plateau province of Qinghai will be used to make Beijing Olympic Games medals, a Qinghai official said Wednesday.
Qinghai vice governor Jidi Majia said the Organizing Committee of the Beijing Olympic Games had formally confirmed Qinghai jade will be used on Olympic medals, the publication reports.
BOCOG unveiled a medal design in March, 2007, that the gold, silver, and bronze medals incorporate a distinctive band of jade. It’s the first time in Olympic history that medals are made of material other than metal.
Samples of the jade that will be used to make Beijing Olympic Games medals.
"We had the donation ceremony this afternoon," Majia said. "Qinghai will donate a great deal of manufactured jade bands to BOCOG. The jade will come from a Kunlun Mountain area."
He continued, "Qinghai has abundant reserve of jade. We will select the best manufacturer to ensure the quality."
Majia said several thousand jade bands will be handed over to the BOCOG by the end of March.
According to BOCOG’s design, gold medal will incorporate a light, fine jade set in its back while the silver has the white-greenish jade. A greenish jade will be used for the bronze medal.
Jade represents honor and virtue in traditional Chinese culture and the medal design is regarded to well combine Olympic spirit and Chinese culture, the publication said.
Qinghai, with an average altitude of 3,000 meters in west China, has a rich mixture of cultures from Han people and over 50 ethnic minority groups including Tibetan, Hui, Tu, Sala, and Mongolian among its five million residents.
The Beijing Olympic Games will open on Aug. 8.
Alpha Omega Files for Bankruptcy
Alpha Omega Jewelers filed for Chapter 11 bankruptcy late Wednesday night, the Boston Globe reports. Meanwhile, the struggling Cambridge-based retail chain’s owners, who hastily left the country for their native India days before Christmas, remain abroad, according to a company lawyer.
Richard E. Mikels, a partner at the Boston law firm Mintz Levin Cohn Ferris Glovsky and Popeo, told the Globe that his firm—acting on behalf luxury store’s owners and sole directors, Raman and Nilda Handa—filed the paperwork at around 10:40 p.m. with the U.S. Bankruptcy Court for the Eastern District of Massachusetts.
The bankruptcy filing kicks off an auction for Alpha Omega’s assets, with the first bid placed by Tiger Capital and Gordon & Co. at 70.25 percent of the cost value of the inventory, the Globe reports. Mikels told the newspaper that he did not know the dollar value of the jewelry store’s inventory nor how much debt Alpha Omega had accrued.
Representatives of the LaSalle Business Credit arm of Bank of America Corp. took possession of Alpha Omega’s inventory on Dec. 22, a few days after the Handas and their two grown children who work for the family business disappeared without notifying relatives or business associates.
The company is asking the court to auction off the assets around Jan. 22, and until then employees and customers can expect "business as usual" at the four Greater Boston shops, the Globe reports.
Mikels reportedly said consumer programs and employee benefits will continue as before under a loan by LaSalle.
In addition to the flagship store in Harvard Square, there are Alpha Omega stores in Boston’s Prudential Center, in the Burlington Mall, and in the Natick Collection mall.
Raman Handa’s business problems (he reportedly has had mounting bills for the past six months) led him to rely on his personal assets to bolster his jewelry stores. In November, he pledged his $2 million home in Lexington as collateral for business financing that the Alpha Omega parent company, Lexington Jewelers Exchange, had signed with LaSalle Business Credit, according to the South Middlesex Registry of Deeds, the Globe reports.
Middlesex County records show Handa remortgaged his house and a second piece of property he owned about a dozen times in the last 11 years, often for million-dollar-plus sums, the Globe reports. Some refinancings were for lines of credit, including a $350,000 line from National City Bank.
Leader Bank of Arlington was another supplier of loans to the Handas, the Globe reports. Handa also used his home in a $2.4 million business financing that Alpha Omega negotiated with Middlesex Savings Bank in 2002. Many of the loans were repaid or refinanced.
Alpha Omega files for Chapter 11
Alpha Omega files for Chapter 11
January 03, 2008
 |
| Alpha Omega Jewelers, which operates seven stores in the Boston area, including a flagship in Cambridge, Mass. (pictured), has filed for Chapter 11 bankruptcy protection. |
By Michelle Graff
Boston—Alpha Omega Jewelers filed for Chapter 11 bankruptcy protection on Wednesday, three weeks after owner Raman Handa left the United States for India amid health problems and rumors that his company was in trouble.
Papers filed in U.S. Bankruptcy Court in Boston reveal that the company, whose corporate name is Lexington Jewelers Exchange Inc., is $12.7 million in debt, 67 percent of which is owed to its top 20 creditors.
The top three creditors with unsecured claims filed against the company, which carved a niche for itself by selling high-end watches and was known for its “consistent advertising campaigns,” are: Rolex, which claims it is owed $1.5 million, The Boston Globe advertising, which claims it is owed $1.2 million, and Swatch Group, which claims it is owed $665,985. Other companies who claim to be owed money by Alpha Omega include New York-based diamond company Lazare Kaplan ($345,975), Bulgari ($335,80) and TAG Heuer ($289,564). In court papers, all of the claims are listed as “disputed” by Alpha Omega.
According to court documents, as of Dec. 21, Handa and his wife, Nilma, appointed Michael O’Hara of Consensus Advisors as chief restructuring officer, and Gordon Lewis III of Altman and Co. LLC as chief financial officer.
Court papers describe how the company rose from a single store in 1980 to a small chain of stores, now totaling seven in the Greater Boston area. Company sales grew to a high of $39.6 million in 2004, by which time the retailer, known for its watches, had begun migrating into fine-jewelry sales.
“As the debtor grew its fine-jewelry offerings, the debtor’s inventory grew from approximately $15.1 million at the end of 2002, to a high of approximately $27 million during the fall of 2007,” O’Hara stated in court papers. “Unfortunately, in part due to its reputation as a watch-seller and not a traditional jeweler, and in part due to an overly ambitious jewelry-inventory-acquisition program, Alpha Omega’s significant investment in fine jewelry did not yield a commensurate cash flow.”
Alpha Omega has filed an emergency motion to hold a hearing as soon as today that would allow the company to continue doing business and pay its employees.
The company also is looking to schedule an auction later this month to sell its assets.
While the news about Alpha Omega’s demise first surfaced in mid December, when Handa left the Boston area for India, court documents show that trouble had been brewing for some time.
According to a declaration in support of first day relief made by O’Hara, in spring 2007 Alpha Omega defaulted on its credit facility and attempted to restructure its business and debt, hiring Altman and Co. to serve as an advisor.
In November, court documents state, Alpha Omega hired Consensus Advisors to assist in either finding capital or a buyer.
O’Hara stated that, “in my view, the process, while necessary, was personally distressing to Mr. Handa.”
The document goes on to state that Handa “reportedly” checked himself into a local hospital sometime around Dec. 12; on Dec. 16, O’Hara was “informed” that Handa had left for India to seek further medical treatment.
During the time Handa was gone, O’Hara stated the company’s lender, La Salle Business Credit, grew “increasingly concerned” over the business and decided to close Alpha Omega’s stores and seize its collateral, forcing the stores to shut their doors on Dec. 20 and 21.
At that point, the Handas passed a resolution to install O’Hara and Lewis to run the company and to enter into an agreement with Tiger Capital Group LLC to consult and aid in the holiday and year-end sales for the company.
Alpha Omega’s stores reopened on Dec. 22 in an effort to “maximize the last few days of the Christmas shopping season,” court papers said. Alpha Omega operates seven stores in the Boston area: full-service stores in Boston, Burlington, Cambridge and Natick, and Express stores, which specialize in watches ranging from $100 to $1,000, in Boston, Burlington and Cambridge.
Editor’s note: For earlier developments in this story, see Alpha Omega reopens doors.
‘Hollywood Collection’ hits Atlanta
‘Hollywood Collection’ hits Atlanta
January 03, 2008
Atlanta—The Kazanjian Foundation’s “Jewels for Charity Hollywood Collection” is coming to the Atlanta Jewelry Show at the Cobb Galleria Centre from March 1-3.
The Hollywood Collection features prized jewelry formerly owned by celebrities such as Bing Crosby, Clark Gable, Carol Lombard, Eva Gabor, Howard Hughes and the Shah of Iran. The collection also includes pieces such as the tiara worn by Madonna during her wedding to Guy Richie, and the late Princess Diana’s sapphire and gold floral necklace with the Prince of Wales emblem.
The collection will be hosted at the show by Jewelers For Children, which has partnered with The Kazanjian Foundation and its Jewels for Charity program to host the national tour of the Hollywood Collection to retail jewelers across the United States. Jewelers Mutual Insurance Co. and the Atlanta Jewelry show will be co-sponsors of the collection.
Qualified retail jewelers can explore the collection at the show and learn how they can host it in their own stores. Many of the pieces are for sale, and 100 percent of the proceeds are donated to charity, with 30 percent designated to JFC and 70 percent donated to a charity that the jeweler chooses.
“We are honored to welcome the Jewels for Charity Hollywood Collection to the Atlanta Jewelry Show,” said Carol Young, executive director of the Southern Jewelry Travelers Association (SJTA), which produces and manages the Atlanta Jewelry Show. “This incredible collection offers a truly innovative way for independent retailers to get involved in raising funds for important causes.”
The Hollywood Collection will be on display in the Point of View: A Designer’s Gallery on the show floor.
Ready for romance?
Ready for romance?
January 03, 2008
 |
| These ruby and diamond cuff links are one of the exquisite gifts Levinson Jewelers is featuring for Valentine’s Day. |
Plantation, Fla.—Independent retailer Levinson Jewelers, based in Plantation, is showcasing the latest luxurious jewelry gifts for the year’s most romantic holiday.
These include 18-karat white gold heart-shaped earrings with rubies and baguette diamonds, priced at $27,860; a women’s 18-karat white gold Franck Muller Geneve Sweetheart Watch with diamond bezel on a red crocodile strap, priced at $27,300; and men’s 18-karat white gold cuff links with rubies and diamonds, priced at $6,400.
Levinson Jewelers also carries other designer lines such as Backes and Strauss, Barry Kronen, Bulgari, Franck Muller, Jaeger-LeCoultre, Panerai, Penny Preville, Piaget and many others.
For more information, call (954) 473-9700 or visit Levinson Jewelers Web site, Levinsonjewelers.com.
Investor raises stake in Zale
Investor raises stake in Zale
January 03, 2008
Washington, D.C.?An activist investor has nearly doubled his stake in Zale Corp., just eight days after the company named a new CEO.
Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, bought a total of 2.16 million shares of Zale stock between Nov. 8 and Dec. 28 at prices ranging from $15.60 to $19.18 a share.
That raises Breeden’s interest in the company from 7.7 percent to 13.3 percent.
Breeden first expressed interest in investing in Zale in September because, he said, he felt the stock was undervalued.
Breeden’s previous accomplishments include winning three seats on the board and a chairmanship at H and R Block Inc. in September. In November, H and R Block Chief Executive Mark Ernst resigned.
Breeden also fought with the management of Applebee’s International Inc. and was able to win seats on the board and strategy committee.
Breeden’s Zale-buying frenzy, done through his Greenwich, Conn.-based company Breeden Capital Management LLC, comes on the heels of the Dec. 20 announcement that Neal Goldberg, a former president of The Children’s Place Retail Stores Inc., would be replacing Betsy Burton at the company’s helm.
Burton lead the Irving, Texas-based chain jeweler since 2006 during which time the company sold off its high-end Bailey Banks and Biddle chain.
Goldberg has 27 years of experience in the retail industry, including senior roles at Macy’s, Victoria’s Secret and Gap Inc.
Editor’s note: For related news, see Shake-up at the top for Zale.
Israel’s polished exports to U.S. drop in 2007
Israel’s polished exports to U.S. drop in 2007
January 03, 2008
Ramat Gan, Israel—Israel’s diamond-trading figures for 2007 show substantial increases over 2006, with net polished-diamond exports up 7 percent.
But the percentage of polished-diamond exports to the United States dropped, from 63 percent of the global market in 2006 to 53 percent in 2007.
The United States does remain the largest market for Israel’s polished-diamond exports, however, with net polished exports to the nation standing at $3.73 billion in 2007, compared with $1.31 billion to Hong Kong, $562 million to Belgium, $429 million to Switzerland and $109 million to India.
Israel Diamond Exchange President Avi Paz said in a statement that despite the decrease in sales to the United States, Israel diamantaires have overall succeeded by dispersing their sales to additional markets.
“The distribution of polished-diamond exports over a wide base of markets is very important for the Israeli diamond industry,” Paz said. “We have targeted China and India for the coming year since they have the greatest potential for future growth. Japan is also a very important market for our industry.”
According to figures released today by Shmuel Mordechai, Israel’s Diamond Controller in the Ministry of Industry, Trade and Labor, net polished-diamond exports in 2007 totaled $7.08 billion, rising from $6.61 billion the year before.
The percentage of net rough-diamond exports rose even more, from $2.70 billion in 2006 to $3.39 billion in 2007, an increase of 25.5 percent.
Net imports of polished diamonds for 2007 rose 13.3 percent, from $4.24 billion in 2006 to $4.56 billion in 2007, and net imports of rough diamonds also increased, from $4.71 billion in 2006 to $5.08 billion in 2007, an 8 percent shift.
Grima, Jeweler to Royals, Celebrities, 86
Andrew Grima, whose jewelry adorned royalty and celebrities, died Dec. 26, The Associated Press reports. He was 86.
Grima died at a hospital in the Swiss mountain resort of Gstaad after contracting pneumonia following a fall earlier this month, his family told AP.
Born to a Maltese father and an Italian mother in Rome in 1921, Grima came to prominence in the 1960s with a flowery and organic style that captured the mood of a new generation of postwar fashion designers.
"When he started, jewelry was a very different thing;” small, precious stuff," his second wife, Jojo Grima, told The Associated Press. "He went straight the other way."
"At that time everything was pretty representative," she said. "There were bows, there were bees, there were little dogs. Andrew used a lot of rough stones and he made large pieces. It was a completely different philosophy."
One of those who took an interest early on in Grima’s work was Lord Snowdon, then married to Britain’s Princess Margaret.
"Lord Snowdon had written an article in the paper saying that there was nothing exciting in jewelry," Grima’s wife reportedly said. "My husband called and said, ‘Would you like to come and see my workshop,’ and they became good friends."
The Snowdon connection as well as numerous prizes Grima received for his work during the 1960s earned him a coveted royal warrant as a supplier of jewelry to the British royal family.
Among the pieces he made was a ruby, diamond and gold brooch given to Queen Elizabeth II by her husband Prince Philip and worn during her televised Christmas Day speech this year, a day before Grima’s death.
Other customers included former U.S. first lady Jacqueline Onassis, actress Ursula Andress, and sculptor Barbara Hepworth.
Grima, who never formally trained as a jeweler, joined H.J. Company, owned by his first wife’s father, after the war, during which he had spent five years in Burma and India with the Royal Engineers.
He first worked as an administrator, but one day persuaded his then father-in-law to buy a suitcase full of semiprecious stones from a pair of Brazilian dealers so that he could try his hand at designing a new kind of jewelry.
"He basically was always an artist, but because he had never been formally trained he was able to change the look of jewelry in a way that others couldn’t," his wife said.
Bonhams, which held a special auction of some of his work in 2006, described Grima as a designer who revolutionized his craft and "changed the way jewelry was looked at and worn by the public."
Among the items most sought-after by collectors are 80 unique watches created in 1969 for Omega, and several solid gold LED—or digital—watches that were commissioned by Pulsar.
Grima moved with his family to Switzerland in 1986 following the sale of his flagship store on London’s prestigious Jermyn Street.
Besides his wife, Grima is also survived by a daughter, Francesca, as well as his first wife, Helene Haller, and three children from that marriage, Madeleine, Carole and Philip.
His funeral was held Thursday in Gstaad. A memorial service in London is planned at the end of May, his wife said.
India Protests DTC Sight Reduction
The Gem & Jewellery Export Promotion Council has expressed what it describes as "grave concern" over De Beers Diamond Trading Company’s pruning of Indian sight holders for 2008-2011.
The new DTC list eliminates 25 established sightholders, including eight firms in India and three Indian-owned firms in Belgium, GJEPC said. DTC added six firms, including three from India.
This means that 75 firms will receive regular supplies of rough diamonds for the three-year period, down from the 94.
"While the inclusion of three new Indian firms in the sight holder list is welcomed, the pruning of eight Indian firms defies analysis," GJEPC said in a statement.
The DTC has said that one reason for the reduction of sightholders is due to a global shortage of rough diamonds. GJEPC argues that while it believes the shortage is real, adding six new sights goes against its own reasoning. In addition, GJEPC said that it believes the diamond shortage amounts to no more than 10 percent of supplies, but DTC cut almost 25 percent of capacity in India.
“The concern is on the impact of DTC’s business decision on the industry as a whole," said Sanjay A. Kothari, GJEPC chairman. "This move by DTC will consolidate the business in few hands only, as small and medium enterprises dependent for rough diamond supplies through intra-trade dealings with sight holders will discontinue."
Kothari added, "This will lead to massive unemployment in the sector and affect medium manufacturers. The exclusion has caused discomfort even amongst the existing sight holders as the ones removed will have to bear major investment losses. Mega expansion and investments were undertaken by companies towards integrating manufacturing facilities and now they would be deprived of assured rough supply which will greatly affect their set up."
GJEPC said that the overall impact could have been reduced if the DTC would have increased allocation to the Hindustan Diamond Company. The HDC is a joint venture between De Beers and the government of India and is part of what is known as De Beers’ Diamdel system—a rough diamond supply system set up expressly to feed the market outside its own client list.
"The reasoning behind the announcement of the new sight holder list may be pertinent, but pulling the plug on established companies just after having watched them invest huge amounts in building infrastructure, suddenly triggers a massive loss of trust and business confidence throughout the industry, GJEPC said in its statement.
"No industry with any long-term vision can continue to do business with confidence or develop any plans for the future if it continually wonders whether its raw material supplies could completely vanish in an instant.
"The GJEPC requests DTC to review and reconsider its decision-making process for the selection of sight holders for the coming three-year contract period, as its responsibility to the diamond processing industry as a whole globally and in India particularly is immense, when weighing any new consideration."
Israel 2007 Polished Diamond Exports Up 7%
Israel’s diamond trade figures for 2007 showed a substantial rise in all areas, making 2007 the best year ever, according to the Israeli Diamond Industry.
According to figures released by Shmuel Mordechai, Israel’s diamond Ccntroller in the Ministry of Industry, Trade and Labor, net polished diamond exports in 2007 totaled just over $7 billion, a 7 percent rise over the 2006 total of $6.6 billion.
Net exports of rough diamonds for the year amounted to $3.386 billion, compared to $2.699 billion in 2006, an increase of 25.5 percent.
Net imports of polished diamonds for 2007 climbed $4.5 billion, compared to $4.2 billion in 2006, a rise of 13.3 percent.
Net imports of rough diamonds in 2007 stood at nearly $5.1 billion, an 8 percent increase over the 2006 figure of $4.7 billion.
The United States remained the largest market for Israel’s polished exports accounting for 53 percent of the total, compared to 63 percent in the previous year. Hong Kong imported 19 percent, compared to 16 percent in 2006; Belgium 8 percent, Switzerland 6 percent, and India 2 percent.
Net polished exports to the U.S. stood at $3.7 billion, Hong Kong $1.3 billion, Belgium $562 million, Switzerland $429 million, and India $109 million.
“The world diamond industry is undergoing major changes—in rough supply, in manufacturing locations, and the awakening of new consumer markets," said Moti Ganz, Israel Diamond Institute chairman. "I am pleased to say that the Israeli Diamond Industry is proving its strength by adjusting to these changes successfully. While 2008 promises to be a challenging year, I am confident Israel will maintain its position as a leading player in the world diamond arena.”