NEW YORK — Samuels Jewelers Inc. filed for Chapter 11 bankruptcy protection last Monday in order to reorganize approximately $78 million in debt.
The Austin, Tex.-based jewelry retail chain, the nation’s eighth largest, said in a statement that it intends to conduct business as usual, and that all post-filing obligations to vendors, employees and others will be honored in the normal course of business. Samuels added that the bankruptcy filing, the chain’s third, is another step in the turnaround efforts it initiated more than two years ago.
In a voluntary petition filed with the U.S. Bankruptcy Court for the District of Delaware, Samuels said that as of July 5, the company had $78.4 million in total debts and total assets of $42.5 million.
Samuels said it will reorganize debt accumulated during the last five years by converting certain debt to equity. By cleaning up its balance sheet, the company said its new capital structure will enable it to pursue market share, expand its product line and free up operating capital to complete the remainder of its turnaround.
“The debt burden incurred in the past has seriously limited Samuels’ ability to move forward to capture increased market share in our existing stores,” said chief executive officer Randy McCullough in a statement. “We have determined that the decision to pursue restructuring of our debt through Chapter 11 is the optimum solution, given current economic conditions and the current state of the equity and debt markets.”
As of March 1, Samuels operated 124 stores in 19 states, mainly in the Southwest. The company, founded in 1891, closed 38 stores in 2002.
According to the filing, the creditors holding the largest unsecured claims include New York-based wholesale jeweler Michael Werdiger Inc., which is owed $1.2 million; M. Fabrikant & Sons Inc., a New York-based diamond wholesaler, which is owed $884,000, and diamond wholesaler Amikam & Paras, also based in New York, which has unsecured credit of $611,000. In the petition, Samuels estimated that it has more than 1,000 creditors.
For the third quarter ended March 1, Samuels recorded net income of $2.3 million, or 29 cents a diluted share, versus last year’s loss of $1.9 million, or 24 cents. Net sales fell 14.1 percent to $43.2 million from $50.2 million a year ago. For the first nine months, the firm had a net loss of $7.7 million, or 96 cents, compared with a year-ago loss of $17.2 million, or $2.16. Sales for the period fell 14.7 percent to $85.6 million.As part of the voluntary petition, Samuels has entered into a debtor-in-possession financing agreement with DDJ Capital Management LLC, which owns a controlling interest in Samuels and is also its biggest creditor. In June, DDJ extended the termination date of two of Samuels loan facilities. Also, the company has retained Klee, Tuchin, Bogdanoff & Stern LLP as attorneys for the bankruptcy proceeding.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)