Ultra Diamonds Files For Bankruptcy

by Deidre Woollard (RSS feed)
Apr 13th 2009 at 7:02PM

Another jewelry retailer is facing trouble. Ultra Stores Inc. which is the parent company of Ultra Diamonds, filed for Chapter 11 bankruptcy protection last week. The chain filed a "pre-packaged" bankruptcy with its vendors and banks and hopes to emerge from bankruptcy soon. The company will close 12 of its 181 stores and says it is facing a liquidity shortage. It operates Ultra Diamonds and Premier Fine Jewelry stores as well as running licensed departments in Burlington Coat Factory and Filene's Basement stores.

Ultra has said that its sales decreased 10.8 percent for year ended February 1, 2009, which factors in a drop of 18.9 percent during the winter holiday season. Ultra will operate as a "debtor-in-possession" during the Chapter 11 proceedings, which means that it will mostly be business as usual for the chain. The company is listed as as having $10 million to $50 million in assets but also $10 million to $50 million in liabilities. It has secured $30 million in financing.

UPDATE: As of July 28, Ultra Diamonds has emerged from Chapter 11 bankruptcy protection. It plans to close 30 locations. Crystal Capital will assume 56 percent ownership of Ultra in return for converting half of its debt into equity.

Other jewelry retailers Fortunoff and Robbins Brothers filed for bankruptcy this year but in those cases the situation was a bit more dire. It looks like Ultra should see its way out of this one.

Tags: jewelry, ultra diamonds, UltraDiamonds

Filed under: Jewelry

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Reader Comments (Page 1 of 1)

lOREN Apr 14th 2009 2:40PM

I HOPE ZALES IS NEXT BUT CH 7 NOT 11, THEY ARE CROOKS AND DON'T CARE ABOUT LONG TIME CUSTOMERS

jnk Apr 18th 2009 12:56AM

Love Ultra! Great products. I'd hate to see them get effected by this economy. Hopefully things will get better soon

Jeff Apr 14th 2009 2:59PM

10 to 50 million in assets and 10 to 50 million in debt. That's an 80 million swing one way or the other. Kind of sounds like Enron accounting principals.

jaybro Apr 14th 2009 3:10PM

Ah shucks. And I was going in to buy my girlfriend that diamond she has been demanding for 13 years. Guess she'll have to wait a few years more.

Marie Apr 14th 2009 5:30PM

No diss to your girl, but I wonder why she didn't buy her own ring by now.

Joyce Apr 14th 2009 7:36PM

She may have to wait a few more years, but if it were me, I wouldn't be waiting for you.

formyson Apr 14th 2009 4:35PM

Jaybro, she doesn't really have to wait. Depending on what size, shape, color grade and clarity she wants, you can find some great deals out there. I myself own a few loose diamonds even a Champagne one and I got my deals way back before this recession started and knowing what kind of deals I got then, now that things are worst, like I said, you can really get a great deal now!! I'm a Gem collector and in time, I plan on parting with my stones but as of right now, I'm just not ready to. Search the web, those deals are out there, trust me on this. It may take you a while to find the diamond she wants but you will find it. You can even go this route. By the stone loose and then find the mounting. Sometimes by doing it that way, you can save money. The most I've paid for setting a stone into a mounting was $45. Best of luck to you and your girlfriend. Hope I was able to help.. Peace

formyson Apr 14th 2009 4:33PM

Loren, I think it was Zales who got a hold of a large carat weight of Champagne diamonds and did a huge campaign on them. I'm almost positive it's them because I remember seeing their prices and being shocked. Because these diamonds are not treated to get that color and because the mine is closed down, these diamonds are all the rage right now, well, they've been all the rage for a while but to see a price tag on a ring that has .45 points of Cham. diamonds and nothing else selling for $1,500, well, like I said, it was shocking!! I have a loose single stone that's about 3/4 of a carat and if they can get that kind of money for .45 points, can you imagine what I can get for mine?? Color me happy!! But I hear ya about Zales. They don't really care about keeping their customers and it's not because of the recession. I realized that long ago. Well, they're over priced anyhow. Peace

Earl Apr 14th 2009 5:51PM

I buy and sell precious stones and metals for a living. The last thing you want to hear when it comes to color in a diamond is the name champagne. They are only called champagne in jewelry stores. In the industry we call them brownies. They are not a fancy color. Stay away from the blues that are all over the place too. They are yellows & brownies that are radiated to change the color.

B.O stinks Apr 14th 2009 4:44PM

Dont worry folks EARS said today there is a glimmer of HOPE.Ears will go to the bama bucks factory print out another trillion bama bucks and pass it out just like he did with GM and AIG and all the other glimmers.It will be OK we all need to get a glass of cool aide and HOPE the CHANGE comes instead of the SHUCK and JIVE we got !

Marie Apr 14th 2009 5:29PM

These jewelry chain usually have crap for merchandise. Too many items have small stones which don't make much of an impression on me. And they keep the price tags hidden so you have to get a sales clerk's attention just to get this info. If the clerk is busy, you don't even get acknowledged. And they wonder why they're not making sales?

Marie Apr 14th 2009 5:34PM

I got a 1.5 carat unset champagne diamond from Jewelry TV's web site for a song. And years ago I came back from Alaska with black diamond jewelry for a few bucks. Today they want a fortune. I think the word Diamond makes people go nuts.

Duke Apr 14th 2009 6:03PM

GM will have to file bankruptcy too. GM is on life support from the taxpayer. At least Ultra Diamonds is not staying alive on taxpayers money.

KAS Apr 14th 2009 10:46PM

I doubt the "gov" will allow GM to go under.. too many ties. Isn't it amazing all those companies that were putting the screws to the American public.. are the one's in trouble. They were too big for their own good. The CEO's etc are over paid.. And who do they turn too? The people.. to bail them out.. and keep paying them! For What ? They didn't do their job. As far as the idiot who said he needed to pay the dummies their bonus's or they might leave.. give me a break!
Leave.. who said the "gov" wanted them to clock in at any time in the future?? If they were worth having, their company wouldn't be in the dumps! Excuse me.. ! The American public should be asking for the pay checks back! Not pay them bonus's! Sorry, no one helped me out.. I can't buy eye med's and I have insurance.. because even w/ insurance it costs too much! I can afford to get teeth fixed.. even w/ insurance, because I can't afford the other 20% I have to pay!
Hopefully the "gov" takes a hard look at insurance too! Its time those dummies are put between a rock and a hard place too!

Kameron Kay Apr 14th 2009 6:01PM

Even though some large jewelry chains are going under, the indie home based jewelry artisan is still rockin!

If you want to work from home, make some extra income while doing something you love, check it out here:

http://www.kameronkay.com

cannotbelievethis Apr 14th 2009 6:14PM

First Zales jewelery is all mounted in 10k gold, and the rings turn my finger green. Second I have never heard of Ultra Diamonds, at they are DIP and maybe can fix the problem... hope so...

Sandra Apr 15th 2009 7:26PM

Ultra Diamonds have a few stores in Myrtle Beach, SC.

My husband and I went in both just to look around on our vacation in September. Had a few good sales, but we just didn't have a lot of extra money to be spending on Jewelry at the time.

Shawn Apr 15th 2009 4:54AM

I am sorry to hear this as I have personally Used Ultra Diamonds for years. I hope they are able to bounce back as they have great customer service and are a stand up retail company. They have their own credit card and you usually get 3-6 months to pay off your jewelry off with no intrest what a great company also their ring warranty program is excellant!

Unlike MJ Christensen, And Zales they are the real Crooks

Heather Apr 16th 2009 10:39AM

Ultra Diamonds should go under! My fiance bought my engagment ring there and I've been wearing it for 4 months...last week the diamonds in the band starting falling out. I have lost 3 diamonds in the last 8 days! Ultra Diamonds said they will replace it with a new one but should I really believe that the quality will be any better?!?!?! They said that several customers that bought this style of ring have been having the same problems...so I'm supposed to feel better with a new one?!?!?! I don't think so!