Policies & IssuesSep 11, 2025
Supreme Court to Hear Tariffs Case in November A decision likely won’t come until January 2026 at the earliest, and the tariffs remain in effect until then.
MajorsFeb 22, 2019
Samuels Jewelers to Shutter Stores, Creditors Object
Primary lender Wells Fargo submitted a $16 million credit bid for all the Texas-based retailer’s assets, but some vendors want their consigned goods exempt from the deal.
Wilmington, Del.—Samuels Jewelers, an Austin, Texas-based retailer dating back to 1891, will shutter all its stores by Monday.
The retailer, which filed Chapter 11 in August, had hoped to sell its assets as a going concern, but a credit bid from Wells Fargo, the company’s primary lender, sent dreams of a sale up in smoke.
The $16 million credit bid covers all the company’s assets, including its intellectual property and websites.
As of Jan. 22, the company owed Wells Fargo $51.5 million under its revolving loan obligations, as per court documents.
Samuels Jewelers is not unfamiliar with bankruptcy court, having filed for Chapter 11 twice under its former name Barry’s and again as Samuels Jewelers in 2003.
Indian company Gitanjali Gems Ltd. bought the chain in 2006—later also acquiring Rogers Ltd. and then merging the two companies—and looked to vertically integrate the retailer by supplying the stores with jewelry crafted at its plants in India.
But the company struggled in the face of increasing competition from online and discount retailers, and then was ultimately felled earlier this year when news broke of a $2 billion bank scandal allegedly involving Gitanjali Chairman Mehul Choksi, a scandal that resulted in the chain losing its source of funding and product.
Punjab National Bank, a state-run Indian bank, told Indian authorities on Jan. 29, 2018 that Choksi was part of what the bank called one of the largest bank frauds in Indian history.
Court documents allege that Choksi, his nephew Nirav Modi, a jeweler and diamond merchant in his own right, and Samuels Chief Financial Officer Sunil Varma fraudulently borrowed approximately $2 billion from banks via letters of undertaking and foreign letters of credit.
“The alleged fraud consisted of obtaining bank loans by manufacturing sham transactions to ‘import’ jewelry into India using a web of secretly controlled shell entities,” court documents state.
Choksi and his nephew have denied the charges and reportedly left India before authorities could file charges against them.
An interesting note from the lengthy court documents filed in the Samuels bankruptcy case includes an email from Samuels CEO Farhad Wadia to Sunil Varma on May 10, 2017, entitled “Serious Issues at Samuels” along with 15 attachments describing “egregious issues” at the retailer.
The email detailed a number of concerns, including royalty payments of $5.4 million Wadia thought to be fraudulent from a Middle Eastern “paper company” and information about “circular transactions” that were inflating sales number to
mislead lenders into “giving us an enhanced loan facility.”
He also expressed concern about “consumer fraud on a massive scale” because Independent Gemological Laboratories was not an “independent certification company” and might have been “passing off lab-created diamonds as natural stones,” court papers state. (IGL is a diamond and jewelry grading company owned by Choksi’s British Virgin Island company, as per court documents.)
So, amid all the legal drama, where does that leave vendors?
The court documents’ definition of the inventory purchased by Wells Fargo as part of its $16 million bid leaves no stone unturned.
Under the “purchase of inventory section,” the document lists all finished goods merchandise (new, trade-ins or damaged), all raw materials, all jewelry findings and any merchandise held for repair or cleaning. All shopping bags, boxes, pouches and packers are also included.
Consigned merchandise is also included, but three vendors are asking that their consigned inventory be left out of the sale.
Innovative Pearl, a family-owned, New York-based company, filed a motion on Jan. 18 stating Samuels Jewelers can’t sell inventory it doesn’t own.
The filing states that Samuels Jewelers is in possession of $134,739 worth of Innovative Pearl’s products. While the company said it is willing to work with Samuels, it would not agree to less than consignment price.
New York-based companies GoGreen Diamonds and Unique Designs have since followed suit.
GoGreen, a lab-grown diamond company, alleged that Samuels owes it $5.8 million, including $360,515 from sales of consigned goods and $32,225 of unsold consigned goods.
Unique Designs claims that Samuels owes the company $1.7 million, including $863,212 from sold consigned goods and $821,096 of unsold consigned goods.
The attorneys representing Innovative Pearl, GoGreen Diamonds and Unique Designs declined to comment on the case.
Samuel Jewelers ranked No. 38 in terms of sales among jewelers in North America in National Jeweler’s 2018 “State of the Majors” report and ranked No. 9 in terms of size with 120 stores.
The attorneys representing Samuel Jewelers did not respond to National Jeweler’s request for comment on the latest developments in the case.
He also expressed concern about “consumer fraud on a massive scale” because Independent Gemological Laboratories was not an “independent certification company” and might have been “passing off lab-created diamonds as natural stones,” court papers state. (IGL is a diamond and jewelry grading company owned by Choksi’s British Virgin Island company, as per court documents.)
So, amid all the legal drama, where does that leave vendors?
The court documents’ definition of the inventory purchased by Wells Fargo as part of its $16 million bid leaves no stone unturned.
Under the “purchase of inventory section,” the document lists all finished goods merchandise (new, trade-ins or damaged), all raw materials, all jewelry findings and any merchandise held for repair or cleaning. All shopping bags, boxes, pouches and packers are also included.
Consigned merchandise is also included, but three vendors are asking that their consigned inventory be left out of the sale.
Innovative Pearl, a family-owned, New York-based company, filed a motion on Jan. 18 stating Samuels Jewelers can’t sell inventory it doesn’t own.
The filing states that Samuels Jewelers is in possession of $134,739 worth of Innovative Pearl’s products. While the company said it is willing to work with Samuels, it would not agree to less than consignment price.
New York-based companies GoGreen Diamonds and Unique Designs have since followed suit.
GoGreen, a lab-grown diamond company, alleged that Samuels owes it $5.8 million, including $360,515 from sales of consigned goods and $32,225 of unsold consigned goods.
Unique Designs claims that Samuels owes the company $1.7 million, including $863,212 from sold consigned goods and $821,096 of unsold consigned goods.
The attorneys representing Innovative Pearl, GoGreen Diamonds and Unique Designs declined to comment on the case.
Samuel Jewelers ranked No. 38 in terms of sales among jewelers in North America in National Jeweler’s 2018 “State of the Majors” report and ranked No. 9 in terms of size with 120 stores.
The attorneys representing Samuel Jewelers did not respond to National Jeweler’s request for comment on the latest developments in the case.
More on Majors
The Latest
SourcingSep 11, 2025
Need to Sell More Natural Diamonds? De Beers Has an App for ThatThe new, free app offers accessible educational content, like games and podcasts, for U.S. retailers.
SourcingSep 10, 2025
Tech Meets Style in the New Loewe x Jacob & Co. HeadphonesJacob & Co. partnered with the German technology company on two pairs of headphones, one set with diamonds and the other with sapphires.
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment ProgramWith their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.
TrendsSep 10, 2025
Tiffany & Co. Archival Jewels Bring Life to ‘Frankenstein’Guillermo del Toro’s 2025 “Frankenstein” will feature 27 jewels and objects from the storied brand, including pieces from its archives.
Weekly QuizSep 04, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsSep 10, 2025
24 Karat Club of New York’s Banquet to Return to Waldorf AstoriaThe Waldorf Astoria New York’s grand reopening this past summer means a homecoming for the industry group’s annual event.
SourcingSep 09, 2025
Anglo American to Merge With Canadian Copper Miner Anglo plans to merge with Teck Resources Ltd. to form Anglo Teck. The deal changes nothing about its plans to offload De Beers.
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
AuctionsSep 09, 2025
‘The Mellon Blue’ to Return to Auction, This Time at Christie’s The 9.51-carat fancy vivid blue diamond, which set two world auction records at Sotheby’s in 2014, is estimated to fetch up to $30 million.
AuctionsSep 09, 2025
Phillips Names Dianne Batista Head of Jewels, New YorkThe industry veteran joins the auction house as it looks to solidify its footprint in the jewelry market.
MajorsSep 09, 2025
MJSA Education Foundation Announces 2025 Scholarship WinnersThe nonprofit awarded four students pursuing a professional career in jewelry making and design with $2,250 each.
IndependentsSep 08, 2025
Take a Look Inside the New Korman Store in AustinThe Texas-based jeweler has also undergone a brand refresh, debuting a new website and logo.
MajorsSep 08, 2025
MJSA Is Officially Now Under JA’s UmbrellaThe two organizations have finalized and signed the affiliation agreement announced in May.
AuctionsSep 08, 2025
Sotheby’s To Auction ‘Exceptional’ Collection of JAR, Suzanne Belperron JewelsThe single-owner sale will headline Sotheby's inaugural jewelry auction at the Breuer building, its new global headquarters, this December.
Events & AwardsSep 08, 2025
27 Can’t-Miss Converge Sessions, Events From sunrise yoga to tariffs talks, these are some events to check out at the upcoming inaugural event.
ColumnistsSep 05, 2025
Peter Smith: A Lasting Lesson From Maurice Tempelsman Smith recalls a bit of wisdom the industry leader, who died last week, shared at a diamond conference years ago.
CollectionsSep 05, 2025
Piece of the Week: Jamie Turner’s ‘Victoria’ Necklace The “Victoria” necklace features a labradorite hugged by diamond accents in 18-karat yellow gold.
Policies & IssuesSep 05, 2025
Trump Takes Tariffs Case to the Supreme Court Two lower courts have moved to block the import taxes, which will remain in place as the legal battle continues.
WatchesSep 05, 2025
Patrick Mahomes Is the New Hublot Brand AmbassadorThe Kansas City Chiefs quarterback shares Hublot’s dedication to pursuing greatness, the Swiss watchmaker said.
SourcingSep 04, 2025
Lucara Unveils Unusual 37-Carat Pink DiamondThe Type IIa stone, recovered from Botswana’s Karowe diamond mine last month, features unique coloration.
WatchesSep 04, 2025
Breitling Takes Its NFL Game to the Next Level Breitling is now the NFL’s official timepiece partner, a move that puts the brand in front of the millions of Americans who watch football.
Events & AwardsSep 04, 2025
The NYC Jewelry, Antique, & Object Show Returns in NovemberNYCJAOS is set for Nov. 21-23 in New York City’s Chelsea neighborhood.
SourcingSep 03, 2025
Gemfields Confirms Completion of Fabergé SaleU.S.-based investment company SMG Capital LLC is the new owner of the luxury brand.
MajorsSep 03, 2025
These Are the Nearly 300 Claire’s Stores Set to CloseA new court filing details the locations of the stores that will close, as well as the 830 that will remain open.
MajorsSep 03, 2025
Stuller Releases 2 New Catalogs The new catalogs are “Tools, Equipment, & Metals” and “Findings & Metals.”
TrendsSep 03, 2025
Amanda’s Style File: A Perfect BirthstoneSapphire’s variety of colors make it the perfect birthstone for September.
