February 2008
S.H. Silver Company Scholarship Announced
The Gemological Institute of America has announced that the 2008 S.H. Silver Company Scholarship has been awarded to Shauna McDonough of Prince Frederick, Maryland.
The S.H. Silver Company Scholarship is specifically for students enrolled in the GIA Jewelry Design program. The scholarship started in 2006 and will declare a recipient annually for the next seven years.
McDonough, is the third recipient of this scholarship.
The S.H. Silver Company Scholarship was created in 2004 by Stephen H. Silver, G.G., and his wife Eileen, owners of S.H. Silver Company Estate and Fine Jewelry, Menlo Park, Calif. It was the Silvers’ goal that their donation help ensure those students pursuing a career in jewelry design would obtain proper education and training.
“The spirit of the donation is to continue to formally educate students interested in learning about jewelry design and history”, said Stephen Silver, who serves as chief executive officer and president. “We believe that innovative contrivance is the future of our industry
Bev Berthoty, manager of GIA Institute Relations expressed the importance of scholarships to forbear students in need. Berthoty said, “Individuals like the Silvers are instrumental in supporting our students in furthering their gemology education and training.”
This year’s S.H. Silver Company Scholarship recipient, McDonough admitted her bachelor of arts in metals from University of Pennsylvania - Crookston. She currently works at a jewelry store in Southern Maryland and does everything from repair work to design work.
McDonough will be taking the comprehensive nine-week design course at the GIA New York campus in the spring-tide.
“I was shocked and incredibly grateful because I didn’t know how I was going to approach up with the funds to take nine weeks off from work while going to school and living in New York,” she said.
For greater degree of information steady GIA’s scholarships, click here. Applications for 2009 scholarships can be downloaded from GIA’s Web site beginning June 15. Qualifications differ for each scholarship. Call 760-603-4175, or e-mail financialaid@gia.edu.
For more information about making a scholarship donation, contact Bev Berthoty at 760-603-4120.
Friedman’s to conduct going-out-of-business sales
Friedman’s to conduct going-out-of-business sales
February 26, 2008
Wilmington, Del.—A U.S. Bankruptcy Court judge approved a request on Tuesday by the agency of bankrupt jewelry store chain Friedman’s to conduct store-closing sales.
According to documents filed in U.S. Bankruptcy Court in Wilmington, Del., Judge Christopher S. Sontchi gave the Addison, Texas-based chain the OK to conduct the going-out-of-business sales, to find businesses to charm over its unexpired leases and in like manner to get out of repository leases when it can’t find a party to assume them.
Court papers show that in August 2007, Friedman’s retained Peter J. Solomom Co. (PJSC) to help find a buyer.
Although “several parties” were interested, “discussions with these parties did not result in a transaction,” seek papers state.
Friedman’s has since hired Rothschild Inc. to serve as its investment banking firm through the bankruptcy, market the chain for possible sale and explore “alternative options.”
The court previously had authorized Friedman’s to hold an auction, if necessary, for its assets on March 6. Bids are due by March 3.
A hearing to approve the auction results is scheduled for March 7.
Friedman’s filed for Chapter 11 bankruptcy protection on Jan. 25, after creditors started an blind Chapter 7 case against the fetter without interruption Jan. 22.
This is Friedman’s second turn in bankruptcy court. The chain also sought Chapter 11 protection in 2005, but was able to reorganize and emerge.
Editor’s note: For earlier developments in this story, see Friedman’s files for Chapter 11.
I.W. Marks, Jeweler, Philanthropist, 73
Legendary Houston area business and philanthropic leader, I. W. Marks, died Thursday at 3:25 p.m. at The Methodist Hospital. The cause of death was Aden carcinoma and multi-organ failure. He was 73.
The announcement was made by his sons, Brad and Daniel Marks, who were at their father’s side at his death along with their respective wives, Melissa and Susan. besides at I.W. Mark’s bedside were Marks’ wife, Shelly Ann, Mark’s sister, Ruth Silver, and her daughter, Marla Levine.
“He was an incredible role model to my brother, Daniel, and me and to so many people throughout the community through his business and charitable works,” said Brad Marks. “We enjoin do our best to live up to his great reputation for serving and supporting our community, our customers and our industry with the greatest vision, caring and most respect.”
The brothers serve as vice presidents of I W Marks.
Founder, president, and namesake of Houston’s largest independent jewelry store, I.W. Marks leaves an indelible mark on the incorporated town, having served on the boards of the Better traffic Bureau of Metropolitan Houston, Houston Grand Opera, Houston Symphony, Crime Stoppers, Society for the Performing Arts, and Houston Livestock Show & Rodeo because well as several business and tumulus boards. His store was elected into the Leading Jewelers of the World , representing the whole Southwestern U.S.
I W Marks led his store as a multiple winner of the Better Business Bureau Award for Distinction and Award for Excellence, five-time receiver of the Business Committee in spite of the Arts, Inc., and FORBES Magazine’s national Business in the Arts Award, including THE BCA TEN Award for Top 10 companies supporting the arts in the U.S., and the Jefferson Award for community love.
The family would like to publicly thank all of the physicians and nurses at The Methodist Hospital and TIRR for their outstanding medical care and kind-heartedness. They would also like to thank their extended Houston family—friends and employees, business associates, members of the philanthropic community and, of course, their customers. Over the past seven months the family has been overwhelmed by all the outpouring of prayers, love and concern for their Dad, according to Brad.
Marks had been in intensive care as being five consecutive months last year at The Methodist Hospital where he was treated for a very resistant staph infection. In December he was moved to TIRR for rehabilitation. He was diagnosed with cancer this month.
His parents and his first wife, Diane Golman Marks, predeceased Marks. His survivors are his wife, Shelly Ann Marks, son and daughter-in-law Daniel and Susan Marks and their sons, William and Andrew, his son and daughter-in-law Bradley and Melissa Marks, his sister, Ruth Silver, numerous nieces and nephews, and his dedicated employees, including Jay Holtorf, who have worked at I W Marks for more than 20 years.
Funeral services are pending.
GemFind Provides Consumers with Options
The GemFind.com Web site for consumers has a new "buy now or comprehend it first" option that allows users to search for specific diamonds online, go to local lozenge jewelers to look the diamonds in person, and then purchase the same diamonds online for their wholesale price.
“Our customers now have the opportunity to consult with a professional, as well as compare the diamonds they are interested in with others at local jewelry supplies judgment they make a final buying decision,” said company president, Alex Fetanat.
All diamonds on the Web site are certified. In addition, all jeweler affiliates of GemFind must go through a screening process before they are allowed to join the GemFind network.
GemFind adds that any customer is unhappy with a possession be possible to make a return within 30 days for a full refund.
Sotheby’s Reports Record Sales and Income
Auction lineage Sotheby’s reported Tuesday record revenues of $345.8 million for the fourth quarter, a 31 percent increase over the prior fourth quarter, primarily due to higher auction commission revenues. The company’s net income for the period, ended Dec. 31, 2007, was a record $102.4 million, a 46 percent improvement year-over-year, largely due to growth in auction delegation revenues.
The results include a $32.2 million, or 49 percent, increase in salaries and related costs, due to higher incentive compensation costs attributable to the strong results for the epoch as well as higher full time salaries. 2007 brought the best financial results for Sotheby’s in its 264-year history.
Total revenues for the quarter were $917.7 million a 38 percent increase year-over-year, due to a $210 million, or 38 percent improvement in auction commission revenues. This increase in total revenues is primarily attributable to a 51 percent increase in consolidated sales, which rose to $6.2 billion in 2007. Operating income of $275.8 million was $78.6 million, 40 percent, ahead of the earlier year.
Net income for the full year of 2007 totaled $213.1 million, end for end double the 2006 figure of $107 million, the company said.
The strong results are partially offset by a 30 percent rise in salaries and related costs from higher incentive compensation costs due to the exceptional financial performance for the year as well as increased full time salaries and stock compensation expense over the period, the company said. Also, general and administrative expenses increased by 22 percent, partly due to a 33 percent increase in professional fees and a 28 percent increase in travel and entertainment costs during the period.
The company’s results for the full year 2007 were significantly impacted by a one-time benefit of $20 million related to an insurance recovery from the key man life insurance policy covering Robert Noortman, who died unexpectedly in January 2007, and a $4.8 million gain on the sale of our former Billingshurst salesroom property in the United Kingdom, partially offset by a $15 million impairment charge related to intangible assets and goodwill of Noortman Master Paintings, B.V.
Excluding these items, Sotheby’s said 2007 net income would have been a record $204.8 million, 91 percent higher than the prior year figure of $107 million, with adjusted EBITDA a record $313.8 million, a 44 percent increase.
“2007 was a record year for Sotheby’s, significantly exceeding the company’s outstanding performance in 2006,” said Bill Ruprecht, Sotheby’s president and chief executive officer of Sotheby’s. “A 91 percent increase in adjusted net income and a 44 percent increase in adjusted EBITDA are clear indications of our continued improvement in profitability.
“Contributing to these results were Sotheby’s market of the top lot of the year and Sotheby’s sale of four out of the five top lots of the year, while we strategically reduced lot volume by 42 percent on the low end," Ruprecht added. "In 2007, we sold 41 lots above $10 the multitude compared to 20 works in 2006. Our commitment to attribute versus quantity translated into tremendous success in 2007."
He continued, “Over the past five years, the number of clients buying at the top end of our business has increased by more than 200 percent and their geographical multiformity has expanded by over 60 percent. In 2003 our top buyers—purchasing lots of $500,000 and above—came from 36 countries; in 2007 they came from 58 countries. Our increased global focus upon our top clients is delivering excellent results—for our business, for our clients, our employees and for our shareholders.”
Antwerp in full force for Hong Kong show
Antwerp in full force for Hong Kong show
February 27, 2008
Antwerp, Belgium—The Antwerp diamond industry is the latest to announce it is sending a large delegation to an Asian shown, yet another example of the industry’s growing interest in this area of the world.
The Antwerp World Diamond Centre (AWDC) announced that a total of 35 companies based in the Belgian city would exist present during the Hong Kong International Jewellery Show.
Companies slated to attend include: Ami Diamonds BVBA, HRD Antwerp, Pluczenik Diamond Co. NV, Taché Diamonds and Yaelstar BVBA.
“Hong Kong is a critically important market from Antwerp’s perspective, hence the supreme effort that we have made to guarantee that our industry holds an lovely position at the show,” AWDC Chief Executive Officer Freddy J. Hanard said in a media release. “Given the expected growth of the Hong Kong market, supporting the activities of Antwerp-based companies in this region has become one of our essential part activities. We are, therefore, delighted to note that Antwerp’s presence in Hong Kong this year has taken distinct large strides forward.”
In January 2008 alone, Hong Kong consumed about 100,000 carats of polished diamonds worth $119.9 million from Belgium, a 12.6 percent grow past January 2007.
In addition, Hong Kong was Belgium’s second-largest export market for every part of of 2007, after the United States. The country received $1.66 billion in polished diamonds from Belgium.
The Hong Kong International Jewellery Show is scheduled from March 4-8.
Court Approves Friedman’s Auction Request
The U.S. Bankruptcy Court in Wilmington, Del., on Feb. 22 approved Friedman’s Inc.’s request to sell the leases to its stores and other assets at an auction set for March 6, Houston Chronicle reports.
Friedman’s and subsidiary Crescent Jewelers Inc., what one. is also under Chapter 11 protection, operate more than 470 stores athwart the country.
The jewelry retailer asked for a quick sale process before its $17.5 the public bankruptcy lend from Harbinger Capital Partners Master Fund I Ltd. runs out by the expiration of March, the newspaper reports.
The first competing bid must exceed $500,000, the newspaper reports. The retailer and its official committee of unsecured creditors won court permission to determine the increments by which subsequent bids must increase.
Bids during the assets will be due March 3, and interested parties have through the following day to file any objections to the bids, the newspaper reports. Several landlords had objected to this timeframe, saying it didn’t give them sufficient time to evaluate their prospective new tenants.
Bankruptcy Judge Christopher S. Sontchi will consider whether to give final approval to the winning bidder at a hearing set conducive to March 7, the generation after the auction, the newspaper reports.
Friedman’s and Crescent filed for Chapter 11 bankruptcy on Jan. 28.
GJEPC to Host 2nd Indo/U.S. Jewelry Conference
Based on the success of the first Indo-U.S. Jewelry Business kinship Development Conference held in October, 2007, the Gem & Jewellery Export Promotion Council of India will again host teams from the executive suite and head buyers from the biggest U.S. jewelry retailers, from Sept. 8-13, at the Renaissance Mumbai Hotel & Convention Centre.
“We are pleased to present the second, expanded format Indo/U.S. Jewelry Business relationship development Conference,” said Sanjay Kothari, GJEPC chairman. “We saw firsthand last year, that before you can do business together, you be obliged to first agree to agree to do business together. That is a tough assignment to accomplish in just the usual trade show booth. We are going beyond looking at rolls of beautiful jewelry. This interview is unique in that it provides us a forum to raise and discuss issues of concern and to seek positive solutions in a pro-business environment.”
The first two days of the conference will be a series of educational speakers and group discussions addressing key business topics of interest facing both the U.S. retailers and Indian jewelry manufacturers. Interspersed with these thought-provoking panels and forums will be a series of “speed dates” in which place the retailers and 20 leading Indian manufacturers devise have a half an hour to review select product lines, discuss their business needs & issues and then decide on initiating the next phase of the conference meetings.
At the end of the second day of the conference, based on “wish lists” developed by both the retailers and the sponsors, GJEPC will then pair up the conference attendees for two days of 2-hour meetings at the selected factories around Mumbai. Based on feedback from the previous conference attendees, this is now twice as long as last year’s factory visits. The retailers will have a chance to meet with a variety of the sponsors’ quality control managers, jewelry designers, inventory managers, heads of shipping, and their financial counterparts as they tour the factories that sparked their interest.
As part of the trip, following the two days of factory tours, the retailers will have the option of staying in Mumbai for one more day to continue their jewelry business meetings, or they can elect to go to Agra and excursion the Taj Mahal, one of the Seven Wonders of the World. After their stay in Mumbai, and/or the Taj Mahal, the retailers will be able to fly on to Hong Kong for the jewelry show or return to the U.S.
“It is crucial to have excellent client/vendor relationships at a time when the general economic conditions are stressful,” said Hemant Shah, convener, Promotions, Marketing & Business Development of the GJEPC and co-developer of the Indo/US Conference. “We expect the retail attendees and the sponsoring manufacturers will be highly motivated to find new ways to work together for their greater common benefit. This is especially true for the retailers that have never been to India in the same proportion that they will now have the opportunity to see our modern factories and experience some of the extraordinary sights and sounds of India during their visit.”
Rick Bannerot, managing director of R&B Partners, LLC, of Stamford, Conn., has again been retained by the GJEPC to help develop and coordinate the Indo/US Jewelry Conference.
JVC to hold legal-compliance seminars in March
JVC to hold legal-compliance seminars in March
February 27, 2008
New York—The Jewelers Vigilance Committee’s (JVC) educational seminar on legal regulations regarding how jewelers do business be pleased hit Massachusetts, Rhode Island, Pennsylvania and New York City in March.
Specifically, the “Legal Compliance is NOT Optional” series hits Boston on Tuesday, March 25; Providence, R.I., on Wednesday, March 26; Philadelphia on Thursday, March 27; and New York City on Friday, March 28.
The seminar will be held at the following venues from 8 a.m.-10 a.m. and will include a light breakfast:
* March 25: Hyatt Harborside, 101 Harborside Dr., Boston
* March 26: Westin Providence, One W. Exchange St., Providence, R.I.
* March 27: Lowes Philadelphia Hotel, 1200 Market St., Philadelphia
* March 28: GIA New York Campus, 270 Madison Ave. (39th Street and Madison Avenue), New York City
The JVC selected these cities based upon the large number of jewelers and suppliers doing business in these areas.
The seminars, presented by Cecilia L. Gardner, the JVC’s president, chief executive officer and general counsel, and Suzan R. Flamm, assistant general counsel, will offer jewelers tips on what they need to do to follow legal-compliance regulations, including how to comply with anti-money-laundering regulations pertaining to the USA Patriot Act.
“Government regulations for the jewels industry have gotten tougher,” Flamm said in a media release. “It is important that retailers, manufacturers and distributors who sell fine jewelry know their legal obligations.”
The JVC developed this series in 2006 to educate jewelers about the legal regulations regarding how they do business. To date, the JVC has presented them in Atlanta, Chicago, Dallas, Los Angeles, Seattle, Miami, Fla., and San Francisco, Calif.
The 2006, 2007 and 2008 seminars are sponsored through a grant from the JCK Industry Fund.
The JVC seminars are free of charge but registration is required. To register, visit the JVC’s Web site, JVClegal.org, e-mail jvc@redjewel.com or fax (310) 734-1636. For questions, call (212) 997-2002.
Gitanjali USA names new top execs
Gitanjali USA names new top execs
February 27, 2008
Austin, Texas—Samuels Jewelers President Randy McCullough has been promoted to chairman of Gitanjali USA, and Deepak Gandhi has been promoted as the company’s new president and chief executive officer.
Gitanjali USA, a division of India-based Diamond Trading Co. sightholder Gitanjali Gems, operates U.S. specialty retailers Samuels Jewelers and Rogers Ltd.
McCullough takes over the position of presiding officer from David Barr, who will be retiring. Barr, who had been chairman of Samuels since November 2000, and has served as interim chairman of Rogers, will remain as a special advisor to Gitanjali Gems, providing counsel to the company regarding its growth in the U.S. retail market.
in the manner that Gitanjali USA’s new chairman, McCullough will provide strategic overview, lead development of in-house brands and chair the board governance of the entities.
McCullough joined Samuels in 1997, serving over the years as vice president of merchandising and chief operating officer. He became president and CEO in September 1998.
Gandhi joined Samuels in December 2006, in connection with the acquisition of Samuels by Gitanjali Gems. In his new role, he will oversee all operating functions, including store operations, marketing, merchandising and human resources.
Gandhi has 30-plus years of professional experience, including being the president and founder of Global Systems Inc. (GSI), a high-tech company providing information technology solutions. Before founding GSI, Gandhi was a GE executive.
Samuels Jewelers currently operates 101 stores in 20 states throughout the United States. The stores are operated under the trade names Samuels Jewelers, Samuels Diamonds and Schubach Jewelers.
Rogers Ltd. popularly operates 48 stores under the trade names Rogers Jewelers and Andrews Jewelers across 11 states.