EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
MajorsAug 08, 2018
Samuels Jewelers Files for Bankruptcy
It is the fourth U.S.-based company impacted by the multibillion-dollar bank fraud scandal that erupted in India earlier this year.
Wilmington, Del.—Samuels Jewelers Inc., the Texas-based jewelry chain controlled by Mehul Choksi, has filed for Chapter 11 bankruptcy.
The filing for the 120-store chain comes in the wake of a $1.8 billion bank fraud allegedly perpetrated by Choksi, who is the owner of Samuels parent company Gitanjali Gems, and his nephew, Nirav Modi, both of whom are wanted by Indian authorities.
According to an affidavit filed in U.S. Bankruptcy Court in Delaware on Tuesday, the bank scandal Choksi is implicated in “amplified the headwinds” already pounding Samuels Jewelers.
The retailer has seen sales slide and profits shrink in recent years due to competition from discount and online retailers.
When news of the scandal broke, Samuels Jewelers lost a major source of its products and funding in Gitanjali (which, according to court papers, has not been in operation since February), and vendors began to pull out, refusing to supply the retailer with merchandise on consignment.
According to court papers, the retailer is looking to sell itself as a going concern, but, in the meantime, plans to close more than 100 stores and has brought in Gordon Brothers Retail Partners and Hilco Merchant Resources to start selling off inventory in order to begin paying off its debts, which total more than $100 million and include millions owed to Wells Fargo N.A. and GB Credit Partners LLC.
The company also owes millions to vendors and service providers.
Court papers show that Samuels Jewelers’ five largest unsecured creditors are: Exclusive Design Direct Inc., a Sterling Heights, Michigan-based collection agency (owed $9.1 million); Taipinyang Trading Ltd., a Hong Kong company (owed $6.1 million); New York-based lab-grown diamond company GoGreen Diamonds Inc. (owed $5.5 million); New York-based Jewel Evolution Inc. ($2.4 million); and Austin, Texas-based jewelry company Voyager Brands Inc. (owed $973,952).
Samuels Jewelers joins A. Jaffe, Firestar Diamond and Fantasy Inc., which were owned by Nirav Modi, in filing for bankruptcy in the wake of the Indian bank scandal.
A. Jaffe has since has been sold as a going concern, and companies have purchased inventory held by both Fantasy and Firestar.
Tuesday’s filing marks the fourth trip through bankruptcy court for the chain that today is known as Samuels Jewelers, employs 690 people and has stores in 23 states operating under five nameplates: Samuels Jewelers, Rogers Jewelers, Andrews Jewelers, Schubach Jewelers and Samuels Diamonds.
David Blum and Gerson Fox founded the specialty jeweler
in Los Angeles in 1956. Within a few years, it grew from a single store into a regional chain spread throughout southern California.
According to court papers, in the mid-1980s, the chain took advantage of lenient credit standards, increased consumer spending and the rapid expansion of indoor shopping malls to open more stores and acquire Mission Jewelers from Zale Corp. and Samuels Jewelers from Peoples Jewelers.
In the early 1990s, after almost a decade of growth and acquisitions, the company began to experience “financial distress.” It filed for Chapter 11 bankruptcy in February 1992.
It emerged from bankruptcy but was struggling again toward the end of the ‘90s, filing for Chapter 11 for the second time in May 1997.
When it emerged this time, 36 percent of the company was owned by DDJ Capital Management, and its board decided to change the company’s name from Barry’s Jewelers to Samuels Jewelers, its “most successful and, to the consumer, easily recognizable division,” court papers state. They also moved the company headquarters from California to Austin.
The retailer filed Chapter 11 for the third time in August 2003, and Gitanjali Gems bought the retailer shortly thereafter, in December 2006. It later acquired Rogers Ltd. and added Rogers Jewelers and Andrews Jewelers to its stable of U.S. retailers.
Gitanjali merged the two companies in 2010.
According to court papers, in the mid-1980s, the chain took advantage of lenient credit standards, increased consumer spending and the rapid expansion of indoor shopping malls to open more stores and acquire Mission Jewelers from Zale Corp. and Samuels Jewelers from Peoples Jewelers.
In the early 1990s, after almost a decade of growth and acquisitions, the company began to experience “financial distress.” It filed for Chapter 11 bankruptcy in February 1992.
It emerged from bankruptcy but was struggling again toward the end of the ‘90s, filing for Chapter 11 for the second time in May 1997.
When it emerged this time, 36 percent of the company was owned by DDJ Capital Management, and its board decided to change the company’s name from Barry’s Jewelers to Samuels Jewelers, its “most successful and, to the consumer, easily recognizable division,” court papers state. They also moved the company headquarters from California to Austin.
The retailer filed Chapter 11 for the third time in August 2003, and Gitanjali Gems bought the retailer shortly thereafter, in December 2006. It later acquired Rogers Ltd. and added Rogers Jewelers and Andrews Jewelers to its stable of U.S. retailers.
Gitanjali merged the two companies in 2010.
More on Majors
The Latest
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
Recorded WebinarsNov 15, 2024
Watch: 10 Tips to Keep Your Jewelry Store Secure On the latest episode of “My Next Question,” two experts share best practices for store security during the holidays and year-round.
Weekly QuizNov 14, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsNov 14, 2024
18th-Century Diamond Necklace Sells for Nearly $5M Sotheby’s sold the necklace, which potentially has ties to Marie-Antoinette, for $4.8 million to a woman bidding via phone.
WatchesNov 14, 2024
Grand Seiko Partners With Ben Bridge on First Hawaii Store The new Grand Seiko boutique is located in Honolulu’s Waikiki neighborhood.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
SourcingNov 13, 2024
Gem Legacy Adventures Announces 2025 Trip Eleven spots are available for travelers to visit Northern Tanzania and Southern Kenya from July 25 to Aug. 4.
AuctionsNov 13, 2024
Aga Khan Emerald Sells for $8.8M, Sets RecordThe emerald brooch-turned-pendant returned to auction after 55 years, setting a world record for most expensive emerald sold at auction.
AuctionsNov 13, 2024
‘Exceptional’ Burmese Ruby Ring Tops $5M at Auction Phillips also sold a 1.21-carat fancy red diamond dubbed the “Red Miracle” for more than $1 million at its jewelry auction in Geneva.
MajorsNov 13, 2024
Royal Chain’s New Catalog Is Out NowThe 2024-2025 book introduces hundreds of new designs.
FinancialsNov 12, 2024
Cartier, Van Cleef & Arpels Continue to Shine for Richemont Richemont’s jewelry sales ticked up 2 percent in the first half of the year, while watch sales plummeted 17 percent.
GradingNov 12, 2024
GIA’s Next-Day Services Return for the HolidaysOffered by the lab since 2016, the holiday season special is good from now through mid-December.
CollectionsNov 12, 2024
Mikimoto and Chrome Hearts Blend Aesthetics in New CollaborationThe “Mikimoto Chrome Hearts” jewelry brings pearls from Mikimoto together with distinctive motifs from Chrome Hearts.
CollectionsNov 08, 2024
Piece of the Week: Larkspur & Hawk’s ‘Tapestry Lily’ Earrings These earrings use flat-backed white quartz to create a window onto an antique ribbon embroidered with a floral design.
Events & AwardsNov 08, 2024
AGTA Reveals Spectrum, Cutting Edge Award Winners for 2024This year’s AGTA Spectrum & Cutting Edge Awards included a new category for engagement rings and a new award highlighting female designers.
FinancialsNov 08, 2024
Brilliant Earth’s Q3 Sales Fall 13%Plus, CEO Beth Gerstein shares her insight on the holiday season and the possibility of new tariffs.
TrendsNov 07, 2024
Amanda’s Style File: Golden and Blue November HuesThe month’s birthstones, citrine and blue topaz, reflect the changing colors of the season.
CollectionsNov 07, 2024
Sidney Garber Collaborates With Carey Lowell on Capsule CollectionThe “Carey Lowell x Sidney Garber” collection stems from the friendship between the jewelry designer and ceramicist.
MajorsNov 07, 2024
Ritani Debuts ‘No-Fuss’ Holiday TV CampaignThe two ads highlight diamond engagement rings and diamond studs with a straightforward approach.
Policies & IssuesNov 07, 2024
Diamonds Do Good To Distribute $250K+ In Grants Next YearIn 2025, the nonprofit plans to continue its support of longstanding partners while also allocating some funds to a new initiative.
AuctionsNov 06, 2024
Two Rolexes With Ties to Titanic Head to AuctionThe Rolex watches are from the collection of “Titanic” co-producer Alfred “Al” Giddings and will go up for sale at Sotheby’s next month.
FinancialsNov 06, 2024
Pandora Posts Double-Digit Revenue Growth in Q3The Danish jewelry company plans to open up to 150 concept stores this fiscal year.
GradingNov 06, 2024
GIA to Close Lab in Ramat Gan, IsraelThe location will close by the end of the year due to it being financially unsustainable, GIA said.
MajorsNov 06, 2024
David Yurman’s Holiday Campaign Celebrates ‘Moments of Joy’The new campaign stars Sterling K. Brown, Hero Fiennes Tiffin, Winnie Harlow, Kyle Kuzma, Arizona Muse, and Iris Law.
CollectionsNov 05, 2024
Jacquie Aiche is Hosting an Online Treasure HuntOne lucky winner will receive a “Lizzie” diamond bracelet.
