TrendsJul 26, 2024
Piece of the Week: Bea Bongiasca’s ‘Double Loop’ EarringsCommemorate “brat summer” with these green hoops.
MajorsNov 06, 2018
Refiner Republic Metals Files for Bankruptcy
There are “inventory discrepancies” in the company’s books and records, court papers state.
New York—One of the country’s largest precious metal refiners filed for bankruptcy Friday following the discovery of “inventory discrepancies” in its books and records this past summer.
Republic Metals Corp., which has its main office in New York and processes metals at a facility in Miami, filed Chapter 11 in U.S. Bankruptcy Court for the Southern District of New York.
The company is looking for a buyer, and on Oct. 29, Swiss refiner Valcambi issued a press release stating that it had “reached an understanding” to acquire Republic Metals Corp. and the companies were “working through the logistics of the planned integration.”
Jennifer Mercer, a spokeswoman for Republic Metals, clarified Monday that no deal had been finalized but that talks with Valcambi are ongoing. A Valcambi spokeswoman did not respond to request for comment.
Founded in 1980 by Richard Rubin, Republic owns Republic Metals Refining Corp. and Republic Carbon Company LLC, which processes spent carbon from metals mines.
In a declaration filed alongside the company’s Chapter 11 petition, Chief Restructuring Officer Scott Avila outlined the events that led up to the decision, starting in April when the company “discovered a significant discrepancy in its inventory accounting” while preparing its full year 2018 and first quarter 2018 financials.
Republic Metals retained accounting firm EisnerAmper LLP, which confirmed that there were discrepancies in both the company’s books and records, though Mercer said she could not elaborate on the scope or nature of the discrepancies.
In late June, the company got together with its senior lenders to ask the banks to give it “breathing room” while it worked to sort out the inventory issues and develop a plan to either rectify them or restructure, the declaration states.
But the banks began to press the company a few weeks later, serving it with termination, default and demand notices July 10.
Around the same time, Republic Metals began looking for a buyer, contacting a “major, strategic metals refiner about [a] possible acquisition”—meaning Valcambi—and bringing Avila on board as CRO.
According to the declaration, the banks agreed to hold off to give Republic Metals a chance to work out a deal with the potential buyer. But as the months passed and no deal was forthcoming, the banks cut off negotiations and one lender, ICBC Standard Bank, suspended the refiner’s ability to pay customers via credit on the London metals exchange, its most common form of payment.
Avila, the company’s board and its creditors opted to file Chapter 11 on Nov. 2, as the refiner has “limited cash” and “the inability to trade metals or deliver refined goods,” the declaration states.
If a deal with Valcambi isn’t reached and the refiner cannot find another buyer, then it will be forced to liquidate its assets and inventory.
Republic Metals Refining Corp. has between 1,000 and 5,000 creditors, with assets totaling $174.8 million but liabilities topping $265 million, according to court papers.
Its largest secured lenders include Mitsubishi International Corp., the New York branch of Coöperatieve Rabobank U.A. and Bank Leumi USA, which is among the lenders that have pulled out of the diamond and jewelry trade in recent years.
The company’s No. 1 unsecured creditor is Parsippany, New Jersey-based Laurelton Sourcing LLC, a subsidiary of Tiffany & Co. According to the Chapter 11 petition, Republic owes Laurelton more than $17 million.
Other trade debts include nearly $10 million owed to Chihuahua, Mexico-headquartered mining company Coeur Mexicana SA de CV; more than $5 million owed to Premier Gold Mines Ltd. in Thunder Bay, Ontario, Canada; and Geib Refining Corp. in Warwick, Rhode Island, which is owed more than $3 million, court records show.
If a deal with Valcambi isn’t reached and the refiner cannot find another buyer, then it will be forced to liquidate its assets and inventory.
Republic Metals Refining Corp. has between 1,000 and 5,000 creditors, with assets totaling $174.8 million but liabilities topping $265 million, according to court papers.
Its largest secured lenders include Mitsubishi International Corp., the New York branch of Coöperatieve Rabobank U.A. and Bank Leumi USA, which is among the lenders that have pulled out of the diamond and jewelry trade in recent years.
The company’s No. 1 unsecured creditor is Parsippany, New Jersey-based Laurelton Sourcing LLC, a subsidiary of Tiffany & Co. According to the Chapter 11 petition, Republic owes Laurelton more than $17 million.
Other trade debts include nearly $10 million owed to Chihuahua, Mexico-headquartered mining company Coeur Mexicana SA de CV; more than $5 million owed to Premier Gold Mines Ltd. in Thunder Bay, Ontario, Canada; and Geib Refining Corp. in Warwick, Rhode Island, which is owed more than $3 million, court records show.
More on Majors
The Latest
EditorsJul 26, 2024
Out & About: A Dispatch from the Nation’s Smallest StateEditor-in-Chief Michelle Graff returns from Rhode Island with thoughts about in-store shopping and a trends report.
Supplier BulletinJul 25, 2024
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionSponsored by Gemological Institute of America
Brought to you by
The End of an Era? Lab-Grown Diamonds' Journey Towards Price StabilityAs the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.
TechnologyJul 25, 2024
Amazon, BBB Sue Website Allegedly Peddling Fake Reviews They claim ReviewServiceUSA.com was selling both positive and negative reviews of products and businesses.
Weekly QuizJul 25, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingJul 25, 2024
De Beers’ H1 Revenue Falls 21% in ‘Weak’ MarketLab-grown diamond sales in the United States and ongoing economic challenges in China are impacting natural diamond demand.
IndependentsJul 25, 2024
Store Designer Ruth Mellergaard DiesA longtime member of IJO, she’s remembered for her passion for design, learning, and environmentalism.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionGIA®’s most advanced microscope has new features to optimize greater precision and comfort.
FinancialsJul 25, 2024
Boucheron, Pomellato Post Double-Digit Growth in Q2 The gains come amid a tough time for parent company Kering, which saw sales slide 11 percent in the first half of the year.
FinancialsJul 24, 2024
LVMH’s First-Half Jewelry, Watch Sales Dip 5%Tiffany & Co. is focusing on its “iconic” collections while the company has made changes at the top at TAG Heuer and Hublot.
MajorsJul 24, 2024
See Chaumet’s Paris Olympic Medals Inspired by its High JewelryThe Parisian brand is the first jewelry company in the history of the Olympic and Paralympic Games to design the medals.
MajorsJul 24, 2024
Jewelers Mutual Acquires Pawnbroker Insurance ProviderUnion Life & Casualty will join JM Insurance Agency Partners, expanding the provider’s pawnbroker coverage.
MajorsJul 24, 2024
Ben Bridge Announces 2024 Lonia Tate Scholarship WinnerLos Angeles-based Bradlei Smith was selected for this year’s award.
ColumnistsJul 23, 2024
Peter Smith: The Case for Optimism in Sales In his latest column, Smith shares multiple reasons why people who look at the glass as being hall full often make better salespeople.
SourcingJul 23, 2024
De Beers’ Production Drops 15% in Q2The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.
IndependentsJul 23, 2024
Long’s Jewelers Is Giving Away a Luxury Cape Cod VacationThe giveaway is part of the New England jeweler’s summer bridal event.
CollectionsJul 23, 2024
Guzema Debuts ‘Flower Power’ CampaignThe ad features three celebrity florists creating floral sculptures while wearing jewelry by Guzema.
Policies & IssuesJul 23, 2024
Diamonds Do Good Announces Its 2024 Entrepreneurship Grant WinnersThe grant provided a total of $100,000 to support 13 entrepreneurs from diamond communities in Africa and India.
CrimeJul 22, 2024
Florida Jeweler Shot, Killed Following Argument With CustomerGhazi Michel Osta, or “Gus,” was killed Friday by an 83-year-old man said to be a frequent customer at his store, Volusia Gold & Diamond.
Policies & IssuesJul 22, 2024
JVC’s Elyssa Jenkins-Pérez Joins RJCThe organization also announced Effie Marinos as its new specialist advisor for technical standards, as well as four other appointments.
SourcingJul 22, 2024
AWDC Names Karen Rentmeesters as CEORentmeesters has served as interim CEO since April following former CEO Ari Epstein’s resignation.
IndependentsJul 19, 2024
Longtime D.C. Jeweler Brian Mann Dies at 70Mann, whose family’s jewelry store was located inside the Pentagon, is remembered for being a thoughtful champion of the industry.
IndependentsJul 19, 2024
The 1916 Company Opens New Tudor BoutiqueThe 500-square-foot boutique is located in Denver’s Cherry Creek Shopping Center.
CollectionsJul 19, 2024
Piece of the Week: Messika’s ‘So Move Max’ NecklaceDance all night long with the “So Move Max” set’s necklace.
WatchesJul 18, 2024
TAG Heuer, Hublot Will Have New CEOs Luxury giant LVMH is reshuffling the leadership in its watches division.
MajorsJul 18, 2024
New Etsy Campaign Prioritizes Creators Amid BacklashSellers and shoppers have spoken out against a rise in mass-produced merchandise on the platform meant to highlight handmade goods.
MajorsJul 18, 2024
Swarovski Names Ariana Grande as Its New Brand AmbassadorThe celebrity will star in Swarovski’s holiday campaign.
