Jewelry retailer Finlay Enterprises Inc. said in a regulatory filing with the Securities and Exchange Commission that its lenders are performing another review, which could further impact the firm’s borrowing capacity.
If the company can’t improve its liquidity, Finlay said it might have to “significantly curtail our operations or pursue other available options.”
Although the refinancing of long-term debt this month and in November provided some relief, the retailer noted there was no assurance that its business operations, working capital and borrowing availability through the end of the year will be “sufficient to meet” current estimates of its needs or allow it to maintain compliance with a $30 million minimum unused balance requirement.
Hurt by the banking and credit crises, and facing the closure of its leased departments at several department stores, the retailer said current conditions have “negatively impacted our liquidity position and operating performance, and our sales are significantly below our original projections.”
Finlay also said in its filing on third-quarter earnings that senior secured lenders had decreased the borrowing availability under its revolving credit agreement after conducting its latest periodic inventory appraisal. Its third-quarter net loss grew to $20.8 million. Sales rose 12.9 percent to $141.9 million, due in part to the November 2007 acquisition of Bailey Banks & Biddle from Zale Corp., but fell 14.9 percent on a same-store basis.
On Jan. 31, Finlay will close 93 licensed departments in Macy’s North and Northwest divisions which generated $120 million in 2007 revenue. The firm will continue to operate 216 counters for Macy’s Central, as well as areas in 34 stores in Macy’s Bloomingdale’s division. The Macy’s Central licenses expire on Jan. 29, 2011, and the Bloomingdale’s license one year earlier. Licensed departments in Macy’s stores accounted for 52 percent of Finlay sales, or $438.6 million, in 2007.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast