January 2008
Bench Jewelers Conference set for April
Bench Jewelers Conference set for April
January 25, 2008
Los Angeles—Bench jewelers looking to build their careers or seasoned professionals interested in refreshing their skills will find everything they need at the fifth annual Bench Jewelers Conference and Expo.
The conference, to be held from April 24-27 at the Marriott LAX in Los Angeles, will include seminars, bench demonstrations, networking opportunities, discussion groups and an exhibitor show.
An educational conference will begin with lunch on April 24 and run through lunch on April 27, providing more seminars, demonstrations and panel discussions than in previous years.
The Suppliers Expo, which will be held on the afternoons of April 25 and 26, will showcase CAD programs, casting houses, diamond and colored-stone dealers, findings, laser welders, refiners, tools and equipment, and more, and end with a gala reception on Friday evening.
The conference is open to all bench jewelers, including professionals and serious hobbyists.
Admission to the exhibit floor on April 26 and 27 is free with advanced registration, or $10 at the door. A nominal fee will be charged for the educational conference on April 25 and for all meals during the weekend.
Special room rates at the Marriott LAX are available for conference attendees, which also includes free shuttle service between the airport and hotel. To get the reduced rates, inform the hotel of the reason for the stay or register online at Benchconference.com.
The Bench Jewelers Conference and Expo is presented by Bench Media, publisher of E-Bench, Bench Magazine and the Bench Jewelers Television Network. For more information, visit Benchconference.com.
Kwiat puts romance writers to test
Kwiat puts romance writers to test
January 25, 2008
Hackettstown, N.J.—Do you have a great Valentine’s Day plan? Well, you might be in the running to win a $21,000 Kwiat diamond necklace.
Kwiat Diamonds and My Dove Chocolate—which is known for providing personalized foil wrappings for its chocolates—are hosting the My Dove “Expressions of Love” contest this year, inviting women and men to explain how they plan to say “I love you” on the year’s most romantic day.
Those interested can log on to My Dove Chocolate’s Web site, Mydovechocolate.com, and describe, in 51 characters or less, the way they will express their love on Feb. 14.
The message writer deemed most romantic will win a 5.58-carat diamond necklace from Kwiat Diamonds. Valued at $21,000, the necklace features ribbons of diamonds set in platinum, punctuated by flower petal rosettes.
In addition, the winner will receive a luxury signature gift box from My Dove Chocolate filled with either milk or dark chocolates wrapped in foil printed with their winning message.
“The Expressions of Love contest is a great opportunity for us to recognize consumers’ expressions from the heart, coupled with chocolate lovers’ desire to celebrate Valentine’s with their loved ones by personalizing their heartfelt messages on the inside of their Dove Chocolate foils,” Mars Snackfood US Vice President Jim Cass said in a statement.
For more details, visit Mydovechocolate.com between Jan. 21 and March 15.
Alpha Omega sale approved
Alpha Omega sale approved
January 25, 2008
Two stores to become Ross-Simons
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| A consortium of investors will buy bankrupt Alpha Omega Jewelers’ assets and operate the chain through the sale period. |
Boston—The sale of Boston jeweler Alpha Omega’s assets was approved this morning, and at least two of the company’s stores will become part of the Ross-Simons chain.
According to a news release, U.S. Bankruptcy Court Judge William C. Hillman gave the OK for investment partners The Gordon Co. of Fort Lauderdale, Fla., Boston-based Tiger Capital and SB Capital of Great Neck, N.Y., to buy the bankrupt company’s assets for an undisclosed amount.
A court-ordered liquidation of the company’s multimillion-dollar collection of diamonds, fine jewelry and watches will begin as soon as a complete inventory is taken.
The Gordon Co., Tiger Capital and SB Capital will operate the Alpha Omega chain through the sale period.
Upon its completion, Cranston, R.I.-based Ross-Simons will re-open and re-merchandise the Natick, Mass., store and the stores in the Prudential Center as part of the Ross-Simons chain. All Alpha Omega employees will have the opportunity to interview for positions with Ross-Simons.
Ross-Simons operates nine retail stores in Rhode Island, Massachusetts, Georgia, New Jersey, North Carolina and Connecticut, and four outlet stores.
The consortium of investors is working with “other potential retailers” to assume the leases of Alpha Omega’s other two Massachusetts stores, in Burlington
and the flagship store in Cambridge, according to the news release.
“We are pleased to be associated with Alpha Omega’s outstanding operations and sales team,” Gordon Co. President Philip Holden said in a statement. “They have done a fantastic job during difficult times, overcoming huge obstacles to take care of their clients’ needs. Our immediate goal for the company is to dispose of the current inventory so that the new owner can start with a clean slate.”
The Gordon Co. specializes in managed liquidations for jewelers and other luxury retailers. In 2006, the company led the successful revitalization of Boston-based Shreve, Crump and Low.
Tiger Capital specializes in promotion and management of store-closing events and inventory reduction for retailers.
SB Capital Group, a Schottenstein affiliate, helps businesses manage change, restructure assets and maximize profit.
Editor’s note: For earlier developments in this story, see Winning bid emerges for bankrupt Alpha Omega.
Luxury Index Drops to Historic Low
Luxury consumer confidence at the beginning of 2008 has never been lower, according to a survey of luxury consumers.
Unity Marketing’s Luxury Consumption Index fell 23.8 points from the third quarter to 63.6 points in the fourth quarter 2007, its lowest point since the Stevens, Pa.-based marketing consulting firm has been conducting the quarterly survey.
As affluent consumers’ confidence dropped so did their spending on luxury goods and services, down more than 20 percent from the first half of 2007 to the second, according to the survey.
"Affluent consumers, just like everybody else, feel the pain this time around," says Pam Danziger, president of Unity Marketing and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience. "Since Unity Marketing began its quarterly tracking study in January 2004, luxury consumers have never expressed such a dismal view of their financial status, their feelings about the direction of the country as a whole, and their plans for future spending."
As a result, luxury consumers are holding back on spending in the purely discretionary category of luxury, according to the survey of 1,281 luxury consumers (average income $155,700 and age 46.6 years). Their spending on luxuries in the second half of 2007 dropped more than 20 percent, from an average of $29,307 to $24,301 in the third and fourth quarter.
"Now the pain is starting to spread to the luxury retailers and marketers worldwide, many of which are reporting weaker than expected sales in the U.S. market in the vital fourth quarter period," Danziger said.
"The prognosis is not good in the short term, as witnessed by the concerns incorporated into the Luxury Consumption Index," added Tom Bodenberg, Unity Marketing’s economic forecaster. "The light, if any, at the end of the tunnel, could be the recent moves by the federal reserve to lower interest rates. Should inflation occur due to the relaxing of the money supply, consumers may look at certain luxury items, like jewelry, as ‘investments,’ or hedges against inflation."
In all five measures that make up the Luxury Consumption Index, luxury consumers express a guarded view. The five measures are as follows:
* How luxury consumers feel financially now compared to three months ago: The share of luxury consumers who feel their financial status is worse off now doubled from 3Q2007 to 4Q2007. In 3Q2007 only 12 percent felt their financial position declined; in 4Q2007 nearly one-fourth (24 percent) felt worse off.
* How they feel the country as a whole is now compared to three months ago: Nearly 70 percent of luxury consumers feel the country as a whole is worse off now than it was three months ago. Only 44 percent felt the same in 3Q2007.
* How they feel they will fare financially in coming twelve months: Just slightly more luxury consumers (43 percent) feel they will be better off in the next twelve months, as feel they will be the same (33 percent). But the share of luxury consumers who feel they will be better off retreated markedly from the 53 percent who were optimistic at the end of 3Q2007.
* Spending trends on luxury in past twelve months: Far more luxury consumers (37 percent) said they are spending less on luxury now as compared with those who said their spending had picked up (18 percent). This also retreated sharply from 3Q2007 when 29 percent said they were spending less and 27 percent said they were spending more.
* Spending trends on luxury in coming twelve months: Expectations of future spending is also grim. Some 39 percent said they will spend less on luxury in 2008, while only 16 percent said they would spend more. This compares with 27 percent who expected to cut spending over the next twelve months in 3Q2007 and 21 percent who expected to spend more.
"While all five factors in the Luxury Consumption Index dropped, the one that dragged the index down most is the poor view luxury consumers have about the country’s leadership," Danziger said. "We foresee a very competitive market ahead for the luxury industry at least until the 2008 presidential election. The promise of new leadership in the White House will lift the spirits of the affluent, and hopefully encourage them to open their pocketbooks and wallets a little more."
S. African power shortage forces closure of De Beers’ mines
S. African power shortage forces closure of De Beers’ mines
January 25, 2008
Johannesburg, South Africa—De Beers has suspended all major mining operations in South Africa due to a major national power shortage, De Beers announced on Friday.
At the request of power company Eskom, De Beers Consolidated Mines (DBCM) has ceased production at the Cullinan, Finsch, Kimberley, Manaqualand, The Oaks and Venetia mines.
Mining operations will be managed in a state of operational readiness to continue at a later stage. Therefore, power consumption at these venues has been reduced to “survival load,” meaning that only essential ventilation, pumping, lighting and all other safety-related services will continue to avoid risk to employees and property. And, in the case of De Beers’ two underground operations—Finsch and Cullinan—survival load means the preservation of safe working conditions when the mines re-open.
Eskom has requested a reduction of power consumption from all the nation’s mining operations due to the power shortage.
According to Eskom, the shortage is due to depleted stockpiles, load losses and wet coal, among other factors.
De Beers stated that it has “been advised to prepare for contingencies for a cut in power that may last for some time and is awaiting further information from Eskom.”
DBCM Managing Director David Noko said they are working with Eskom to find solutions to “this serious national challenge.”
De Beers suspends S.A. mining operations
Due to a severe national power shortage in South Africa, De Beers suspended all of its major mining operations in the country.
The state power company, Eskom, requested that the mining giant immediately reduce consumption of power from the national grid to an absolute minimum.
De Beers Consolidated Mines has reduced its consumption to what is it terms as "survival load," and has ceased production from its six South African mines: Venetia, Finsch, Kimberley, Cullinan, The Oaks, and Namaqualand, De Beers said in a statement. Survival load is the use of sufficient power to avoid risk to employees and property, and to maintain, in the case of De Beers’ two underground operations—Finsch and Cullinan Diamond Mine—safe underground working conditions at those mines until power is fully restored.
Eskom, in its own statement, requested "the full co-operation of mining operations" as the company’s power supply is "exhausted" due to a "generation deficiency." Depleted coal stockpiles, load losses, and wet coal were some of the reasons cited by the power company.
The company went on to say that its reserves are in short supply and that it cannot guarantee electricity at this time.
De Beers said mining operations will be managed in a state of operational readiness to continue with operations at a later stage. Essential ventilation, pumping and lighting, and all safety related services will continue, while regular operations will cease. Only essential staff are working.
"De Beers, as a member of the Chamber of Mines, is in discussion with Eskom and the government about the anticipated length of the cut in power," De Beers said. "We have initially been advised to prepare for contingencies for a cut in power that may last for some time and are awaiting further information from Eskom.
"De Beers is currently engaging with its employees, and is investigating opportunities to use this serious interruption as productively as possible. In the interim, activities not dependent on electricity, such as plant maintenance, will continue, as will some surface mining and hauling operations."
Eli Haas New JVC Board Chair
Eli Haas, president of ENH International, Inc. was named the new chairman of the Jewelers Vigilance Committee Board of Directors. Haas and other members of the board were introduced at JVC’s annual luncheon, held recently at the Waldorf-Astoria in New York City. The new board was ratified prior to the luncheon. Their terms will expire in 2009.
JVC 2008-2009 Board of Directors are as follows:
Officers
Eli Haas (Chairman)
ENH International, Inc.
Marc Green (1st Vice President)
Lux Bond & Green
Joel Schechter (2nd Vice President)
Honora Jewelry Co.
Steven P. Kaiser (Treasurer)
Kaiser Time
Robert B. Headley (Corporate Secretary)
Tiffany & Co.
Directors
(*New Board Members)
Ofer Azrielant
Andin International, Inc.
Phyllis Bergman
Mercury Ring Corporation
Mike Elms
Rolex Watch Co.
Jonathan A. Goldman
Frederick Goldman, Inc.
Efraim Grinberg
Movado Group Inc.
Susan M. Jacques
Borsheims
Darin Kath
Jewelers Mutual Insurance Co.
Oliver J. Keene
Helzberg Diamonds
Steve Lang
Zale Corporation
Curtis Ley
Manufacturers Jewelers & Suppliers of America.
Steve Shonebarger
Bulgari
Laura Stanley
Stanley Jewelers
Directors
Michael Barlerin
Michael Barlerin Associates, LLC
Ruth Batson
American Gem Society
Scott Berg
Lee Michaels Jewelers, Inc.
Nancy Brewer
John Calnon
World Gold Council
Eric Christopher
QVC
Ralph Destino
GIA
Luncheon
January 25, 2008
Page Four
Marcee Feinberg
Lazare Kaplan
David Gordon
Orr’s Jewelers
Richard Greenwood
A.F. Greenwood Co., Inc.
Meyer Hoffman
Mikimoto
Dione Kenyon
The Jewelers Board of Trade
Lowell Kwiat
Kwiat, Inc.
Richard Lennox
Diamond Promotion Service
Jenny Luker
Platinum Guild International USA
Robert Mann
Mann’s Jewelers
Daniel Mawicke
Richemont North America, Inc.
Ross Markman
Suberi Brothers, Inc.
William Montalto
Sterling Jewelers
Robert Nordt, Sr.
John C. Nordt Company, Inc.
Larry Pettinelli
Patek Philippe
Matthew A. Runci
Jewelers of America
Aron Suna
Suna Bros. Inc
Jeffrey Weinman
Tache USA Inc.
President and CEO
Cecilia L. Gardner, Esq.
General Counsel
Outgoing JVC Directors:
Jon Bridge
Ben Bridge Jewelers
Allen Brill
Rolex
Babette Goodman Cohen
I B Goodman, Inc.
Sean Cohen
Codiam, Inc.
Susan Eisen
Eisen Fine Jewelry
Esther Fortunoff
Fortunoff Fine Jewelry
Laurence Grunstein
Citizen Watch Company
Charles Lein
Stuller
Beryl Raff
JCPenney
Alpha Omega is Sold
A federal bankruptcy judge on Friday approved the sale of Boston-based Alpha Omega Jewelers, according to local media reports.
The troubled luxury jewelry and watch retail chain was sold to a consortium comprising of Tiger Capital Group LLC of Boston, The Gordon Co. of Ft. Lauderdale, Fla., and SB Capital Group of Great Neck, New York, the Boston Business Journal reports. U.S. Bankruptcy Court Judge William C. Hillman approved the sale Friday morning.
Under the agreement, the consortium will operate Alpha Omega Jewelers through the liquidation sale, the publication reports. Following the sale, the Natick Collection and Prudential Center stores will be re-merchandised and will re-open as part of the Ross-Simons jewelry chain. All of Alpha Omega’s current employees will be offered an opportunity interview for positions within the Ross-Simons organization.
The consortium is reportedly working with potential retailers to assume the leases of The Burlington and Cambridge locations, the publication reports.
It was reported previously that the consortium agreed to purchase the chain’s assets for $18.7 million, just over 70 percent of its value, from 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 owner Raman Handa and their two grown children who work for the family business left the country without notifying relatives or business associates.
Company assets will be liquidated following a review of inventory, the publication reports. Court-authorized price reductions will be effective immediately. Alpha Omega’s entire multi-million dollar inventory of diamonds, fine jewelry, and watches will be targeted for immediate sale at all Alpha Omega locations, which are in Cambridge, Boston, Burlington, and Natick.
De Beers cuts U.S. marketing budget
De Beers cuts U.S. marketing budget
January 25, 2008
New York—De Beers is cutting its U.S. marketing budget, forcing the layoff of 11 employees working on the Diamond Trading Co. (DTC) account at advertising firm JWT.
Sally Morrison of the Diamond Information Center confirmed to National Jeweler that the cutbacks are related to the perception that the United States is headed into a recession, and that 2008 is expected to be a tough year for everyone.
As a result, De Beers is refocusing its efforts to concentrate on the male consumer; the company’s “beacon” products, such as Journey diamond jewelry and three-stone rings, won’t include anymore female-targeted advertising.
Morrison confirmed that the loss of advertising would be counteracted by more public relations.
She also confirmed that those employees impacted were not senior level.
The news is the latest in a string of bad news for the jewelry industry as a whole, as De Beers always has been known for its robust advertising campaigns.
U.S. holiday sales for the majority of jewelry retailers, including the usually bulletproof Tiffany and Co., were down in 2007, and two chain retailers recently entered into bankruptcy.
Boston-based Alpha Omega Jewelers is seeking Chapter 11 protection, and creditors for Addison, Texas-based Friedman’s Inc. have filed a petition to force the struggling company into Chapter 7.
Bench Jewelers Conference & Expo
The fifth annual Bench Jewelers Conference & Expo, being held April 24 – 27 at the Marriott Los Angeles Airport, will include seminars, demonstrations, networking opportunities, and an exhibitor show. The show is produced by bench jewelers for bench jewelers.
This year’s event will have a new format. The Educational Conference will begin with lunch on Thursday and run through lunch on Sunday providing even more seminars, demonstrations, and panel discussions. Participants can attend one, two, three, or all four days. There will be seminars, bench demonstrations, and discussion groups for beginners to skilled veterans.
The Suppliers Expo will be held Friday and Saturday afternoons, with a gala reception on Friday evening. Exhibitors will showcase tools & equipment, findings, refiners, casting houses, diamond & stone dealers, laser welders, and CAD programs.
Special Room Rates are available for conference attendees and includes free shuttle between the airport and hotel. To book a room call the hotel directly and tell them you are attending the Bench Jewelers Conference & Expo or log onto: http://www.BenchConference.com.
Bench Jewelers Conference & Expo is open to all bench jewelers including professional and serious hobbyist. Admission to the exhibit floor on Saturday and Sunday is free with advanced registration or $10 at the door. A nominal fee will be charged for the educational conference on Friday and for all meals during the weekend.
Bench Jewelers Conference & Expo is presented by Bench Media, publisher of E-BENCH, BENCH Magazine, and the Bench Jewelers Television Network. For more information visit www.BenchConference.com.