David Webb Inc. has filed for Chapter 11 bankruptcy court protection in Manhattan, the second New York-based jeweler to do so in the same week.
In business since 1948, the family-owned Webb operates a jewelry store at 789 Madison Avenue in Manhattan and has more than 30 employees. Webb listed assets of between $10 million and $50 million and liabilities of between $1 million and $10 million.
Webb said in court papers filed last Tuesday that it has inventory valued at $7 million and accounts receivable of $165,000, among other assets.
It owes FCC, which does business as First Capital, a secured creditor, $2.9 million. It is also a party to a lawsuit involving its landlord, Lawrence and Melvin Friedland, bankruptcy documents said.
The company Web site lists Nina Silberstein as chairman, Stan Silberstein as president and Sharon Silberstein as vice president and creative director. The firm operates a salon in the Regent Beverly Wilshire Hotel in Beverly Hills.
Court documents said that in the past year, Webb has experienced an “increase in operating costs and a decrease in sales due to poor economic conditions, resulting in substantial cash flow difficulties.” Gross revenue from sales for the fiscal year ended June 30, 2008, was $13.2 million. Year-to-date revenues for the current year are less than $5 million, according to legal documents.
The David Webb filing follows that of Henry Dunlay Designs, also in a Manhattan bankruptcy court, earlier in the week.