January 2008
Winning bid emerges for bankrupt Alpha Omega
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.
A Deal for Alpha Omega’s Assets is Near
A federal bankruptcy judge on Thursday was asked to approve a liquidation deal for the assets of troubled watch and jewelry retailer Alpha Omega Jewelers, the Boston Globe reports.
A consortium comprising of Tiger Capital of Boston, SB Capital of Great Neck, N.Y., and the Gordon Co. of Fort Lauderdale, Fla., were chosen by the new management of Alpha Omega to buy the assets of the four-store Boston-based chain for $18.7 million, just over 70 percent of their value, the newspaper reports.
The new Alpha Omega management team is led by chief restructuring officer Michael O’Hara.
The bid is waiting to be approved by Judge William C. Hillman U.S. Bankruptcy Court for the Eastern District of Massachusetts. A hearing was held Thursday.
A spokeswoman for the new management, said the consortium, if approved, would operate the company’s stores in Boston, Cambridge, Natick, and Burlington on an interim basis while it ran a liquidation sale of the company’s jewelry and watches, the Boston Globe reports. After that, an unidentified luxury jewelry retailer has agreed to assume two of the store leases, subject to court approval.
The company filed for Chapter 11 bankruptcy protection on Jan. 2 by representatives of the LaSalle Business Credit arm of Bank of America Corp., which seized 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 left the country without notifying relatives or business associates.
Eric Lee, President, Chong Hing Jewelers
Eric Lee, president of Chong Hing Jewelers, died Jan. 19 after a brief battle with cancer.
He is survived by his wife, Jessica, sons William and Winston, parents Ronald & Ellen Lee, siblings Stephen and Valerie, in-laws Stephanie Lee, Alexander Castro, and nephews and nieces.
Interment will be Jan. 28, at 11 a.m. at the Skyrose Chapel, Rose Hills Memorial Park, 3888 S. Workman Mill Road, Whittier, CA 90601.
Lee is considered to be a "true son of the industry." The Lee family opened its first store in 1970 in the Chinatown section of Los Angeles and over the years added two more Southern California locations in Rowland Heights, San Gabriel, and Milpitas in Silicon Valley.
Scott Kay, Cari Golden to Speak at JEC
The 2008 Jewelers Executive Conference, being held on March 14-16 at the Doubletree Hotel Overland Park, Kan., will include an inside look at the "white metal revolution." On March 16, the Palladium Alliance International and the Platinum Guild International are sponsoring the morning and the midday educational programs with Scott Kay and Cari Golden. They will explain why the past decade ushered in the white metal revolution and provide jewelers a look at how to make that revolution a positive part of their future.
Scott Kay, America’s most vocal advocate of palladium, is credited with the resurgence of white metal jewelry in America. Platinum became fashionable in this country in the early 1900’s, but it was banned from use as jewelry during World War II, and did not make a return until Kay brought it back in the early 1980’s. Today his bridal collection is the best selling bridal brand, and his engagement ring designs have been selected for the wedding series broadcast on NBC’s Today Show and ABC’s Good Morning America. His fine fashion jewelry line is worn by fellow celebrities the world over and constantly gains press in today’s most read fashion publications. He has appeared on more than 500 television shows and is a frequently requested speaker for global industry events and consumer talk shows. In Scott’s presentation, “The Art of Design in Precious Metals,” he will shed light on selling to jeweler’s biggest buying group, 25 year-olds becoming engaged and he will discuss why men’s jewelry is a very important segment in retail today.
Cari Golden has been recognized as “the eyes, the ears,and the voice” of the Platinum Guild International, an organization she has represented at trade shows and conferences around the world. Her research verifies why the demand for platinum is soaring and why white metal is the metal of choice for almost 75 percent of perspective brides and why jewelers need to “Take Back The Wedding” by making that special occasion a three-ring event. In addition to her travels with PGI, Golden has presented corporate training programs for The Walt Disney Company and Paramount Television. She specializes in looking past the excuses and finding the true basis for decisions. She says that regardless of price and/or budget, jewelers can win sales by guiding young and usually inexperienced buyers to the rings they really want without breaking the bank.
Luxury Bermuda to Launch in 2009
JCK, the leading producer of trade events in the fine jewelry industry, today announced the launch of the ultimate destination jewelry event, LUXURY Bermuda. The event will be held March 15-18, 2009, at the Fairmont Southampton Resort in Bermuda, will target the jewelry industry’s most elite U.S. and European retailers and brands in an intimate relaxed environment.
A beach view of the Fairmont Southampton
Resort where Luxury Bermuda will be held
With 60 exhibitors and 120 hosted stores, Luxury Bermuda will be an exclusive, high-end show. The retailers will be invited based on criteria set forth by the Luxury Advisory Board. The exhibitors will go through an application process, with current Luxury & Premiere exhibitors having automatic acceptance on a first-come, first-serve basis.
Luxury Bermuda will follow a similar by-invitation model to Luxury & Premiere in Las Vegas, hosting the top U.S., European and Caribbean retailers in the industry for one day of business conference and three days of buying in an all-salon, breathtaking ballroom setting.
“The industry is in need of an intimate, niche event, in the mid-March time frame, exclusively dedicated to the high-end brands. Luxury Bermuda will allow these elite buyers and manufacturers to take the time to evaluate inventory needs after the holidays, and then come together in a private, exclusive setting to network, build relationships, and make the business deals that form a strong foundation for the entire jewelry industry,” said Yancy Weinrich, Industry vice president for Luxury by JCK.
While in Bermuda, retailers and exhibitors will experience carefully planned networking and social events, including AAA Four Diamond dining, cocktails, evening entertainment, keynote addresses, and island activities, will allow Luxury Bermuda exhibitors and retailers to build long lasting business relationships.
The mid-March timing of the event makes it ideal for the industry’s leading retailers looking to fill-in from the holiday season, prior to the larger Luxury & Premiere and JCK Las Vegas events.
At 650 miles off the coast of North Carolina, Bermuda is a convenient flight from both the U.S. and London with a year-round mild semitropical climate with temperatures ranging from 68 to 84 degrees.
Jewelers Exec Conference to spotlight white metals
Jewelers Exec Conference to spotlight white metals
January 24, 2008
Oklahoma City—This year’s edition of the Jewelers Executive Conference, a three-day event for jewelry-store owners and managers, will include an inside look at white metals, with bridal designer Scott Kay and Platinum Guild International’s Cari Golden serving as presenters.
Taking place from March 14-16 at the Doubletree Hotel in Overland Park, Kan., the event will also feature displays by leading suppliers as well as additional seminars, educational speakers and a variety of social and networking events.
The third day of the conference will focus on white metals, with the Palladium Alliance International and the Platinum Guild International serving as sponsors of the morning and midday educational conferences.
Both Scott Kay and Cari Golden will speak on the “white metal revolution,” explaining the metals’ return to popularity in the past decade, and giving jewelers a look at how to make that revolution a part of their future.
Fine-jewelry designer Kay is best known for his bridal collection and is a vocal advocate of palladium. At the conference, he will present “The Art of Design in Precious Metals,” shedding light on selling to jewelers’ biggest buying group—25-year-olds becoming engaged—and discussing why men’s jewelry is an important segment in today’s retailing environment.
Golden represents Platinum Guild International at trade shows and conferences around the world, presenting her research on why the demand for platinum is growing and why white metal is the metal of choice for nearly 75 percent of prospective brides. She specializes in uncovering the true basis for decisions, and says that regardless of price and/or budget, jewelers can win sales by guiding young and usually inexperienced buyers to the rings they really want, without breaking the bank.
For more information about the 2008 Jewelers Executive Conference, call (913) 661-0084 or e-mail sjblair38@kc.rr.com.
PAI to launch global palladium campaign
PAI to launch global palladium campaign
January 24, 2008
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| PAI is embarking on a global media campaign for palladium jewelry, such as this “Milky Way” pendant by Nina Basharova in 950 palladium, yellow gold and champagne diamonds. |
Billings, Mont.—Palladium Alliance International (PAI) has hired DJS Marketing to design a new, multi-year, global palladium campaign to increase the precious metal’s brand awareness.
To achieve this, the advertising, marketing, branding and PR firm will embark on a comprehensive program to educate trade professionals worldwide about palladium in tandem with a major consumer campaign.
“2007 was a record year for palladium, rebounding from 2006 with significant growth in China and the United States,” PAI Chairman John Stark said in a media release. “We are forecasting continued growth in 2008 as a result of our strong commitment to focus on the jewelry industry.”
Several renowned manufacturers, including Cartier, Christian Bauer, Michael Beaudry and Scott Kay, are already using palladium in their collections.
Established in March 2006, PAI is an organization dedicated to establishing palladium as a luxurious, precious and distinctive metal. For more information about PAI and palladium, visit PAI’s Web site, Luxurypalladium.com.
Rolex further funds watchmaking education
Rolex further funds watchmaking education
January 24, 2008
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| The Donald W. Reynolds Technology Center, which houses the watchmaking and microtechnology program at Oklahoma State University-Okmulgee. |
Okmulgee, Okla.—Rolex has granted $1 million to the watchmaking and microtechnology program at Oklahoma State University in Okmulgee, which it will distribute over the course of five years.
Donating to watchmaking education is nothing new for Rolex, a brand that established a $1 million, five-year grant for North Seattle Community College in Washington back in 2000, and renewed its grant in 2005.
Furthermore, in 2001, Rolex established its own Lititz Watch Technicum in Pennsylvania, a nonprofit foundation that has graduated more than 50 watchmakers for the industry thus far. In addition, Rolex pledged a $1 million, five-year grant in 2004 to support the Saint Paul College watchmaking program in Minnesota.
Rolex also operates the Tokyo Watch Technicum in Japan as well as the Rolex Training Centre in Mumbai, India.
Creditors seek bankruptcy for Friedman’s
Creditors seek bankruptcy for Friedman’s
January 24, 2008
Wilmington, Del.—A group of jewelry companies owed $9.1 million by Friedman’s Inc. are trying to force the company into Chapter 7 bankruptcy, The Associated Press reported.
Three New York-based jewelry sellers—including the U.S. arm of India’s Rosy Blue—filed the involuntary petition on Tuesday in U.S. Bankruptcy Court in Wilmington, Del.
According to the AP, court papers show that Friedman’s owes two affiliates of Rosy Blue about $6.3 million, $0.19 million to Paul Winston-Eurostar LLC and about $950,000 to two affiliates of Jay Gems Inc.
The companies owed money want Friedman’s to go into Chapter 7 liquidation.
In Chapter 7, a trustee is appointed to liquidate the company’s assets, unlike Chapter 11, where the company can restructure under supervision of a bankruptcy court.
According to the AP, bankruptcy law dictates that Friedman’s has 20 days to respond to the petition.
The Addison, Texas-based jewelry chain could contest the bankruptcy or have the case converted to a Chapter 11 reorganization.
This isn’t Friedman’s first trip to U.S. Bankruptcy Court. The company emerged from Chapter 11 in late 2005.
Zale names new exec VP
Zale names new exec VP
January 24, 2008
Dallas—Zale Corp. has named 30-year retail-industry veteran Theo Killion as executive vice president of human resources, legal and corporate strategy, the company announced today.
Killion will report directly to Zale President and Chief Executive Officer Neal Goldberg.
Killion most recently worked at executive recruiting firm Berglass and Associates, focusing on companies in the retail, consumer goods and fashion industries. Prior to joining Berglass and Associates, Killion was executive vice president of human resources at Tommy Hilfiger, where he was responsible for initiatives that included recruitment and retention, training and development, compensation and benefits, and performance management.
Previously, Killion worked for the Limited Brands in a variety of assignments, including corporate vice president of human resources for merchandising and design. He has also held senior human-resource roles at Macy’s East and the Home Shopping Network.
“Theo brings tremendous experience and leadership skills to our senior management team,” Golderg said in a statement. “He will be instrumental in strategy and organizational development as well as execution. Theo’s expertise will be invaluable as we continue to align our people and our processes in order to focus on operational effectiveness.”