Major Jewelry Retailer, Finlay Files Chapter 11

by Deidre Woollard (RSS feed)
Aug 6th 2009 at 4:01PM

Jewelry retailer Finlay Enterprises Inc has filed for bankruptcy with plans to liquidate its assets. The company had two major operating segments: department store based fine jewelry departments in stores like Bloomingdale's and Macy's and stand-alone jewelry stores. The company filed for Chapter 11 and appointed Gordon Brothers Retail Partners to act as the "stalking horse" bidder in the auction. The "stalking horse" bidder sets the lowest price for the auction. The company estimated the value of its assets at between $500 million and $1 billion with liabilities in the same range and 10,000 and 25,000 creditors. The company has been struggling along with the rest of the jewelry industry lately. Finlay more than doubled its first-quarter loss to $28.7 million even though sales rose 12 percent to $159.3 million. Earlier this year the company tightened its belt by shutting down department store operations and closing nearly half its specialty stores. It currently has 182 locations, including 67 Bailey Banks & Biddle stores, 34 Carlyle stores, four Congress specialty jewelry stores and 77 licensed departments with The Bon Ton.

Finlay is no newcomer to the business. It began as a mail order house for fine jewelry in 1887 and the company has been running jewelry departments in department stores since the 1940s. The Bailey Banks & Biddle which Finlay bought from Zales in 2007 is even older. Bailey Banks & Biddle began in 1832 in Philadelphia and has a long history of supplying some of America's greatest families. In 1904, created the updated and final version of the Great Seal of the United States.

Gallery: Trouble For The Jewelry and Watch Industry

Filed under: Jewelry

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Reader Comments (Page 1 of 2)

mjluallgllcleb Aug 6th 2009 9:27PM

That is not a shock to me have you ever seen there prices for stuff you can get at Walmart for the same quality for thousands less.

timefairy65 Aug 7th 2009 2:41AM

Dumbest comment I've ever read! You're better off shopping for jewelry at a garage sale

dls031568 Aug 7th 2009 5:14AM

LOL.... if you buy jewls from walmart you know NOTHING about good jewls...... Walmart sells PROMOTIONAL GRADE STONES..... in other words.... CHIT!!

Dottie Aug 6th 2009 9:45PM

If my experience with this company is the way they do businessI can understand why they are going broke!! I bought and paid for a ring at Macy's, (Finlay) it was to be resized, I got it after a five and half month wait, only after I threatend to turn the matter over to the states attorney generals office, right after I reported them to the BBB !! I was told when I paid for the ring that it would take 5 weeks to be resized, (that seemed rather long to me, but I agreed to it)

IN 5 1/2 months I could have had a ring designed and made from scratch. Because of this experience I no longer shop at Macy's and I will gladly share my experience with any one who will listen.

James Clark Aug 8th 2009 10:46PM

That is completely bogus! You should be able to get any kind of ring sized within a couple of days. Also, the sizing should have been done for free! They will make up any excuse to avoid giving good customer service.

shirley Aug 6th 2009 9:53PM

You obviously must have trouble seeing. Walmart doesn't carry anything remotely close in quality to BBB. Dream on!

Sheryl Aug 6th 2009 10:25PM

It is no surprise to me that Finley's is bankrupt. They have been dumped by Macy's in favor of their own buyers. They had a ring there for $3975.00 that sold at Zales for $2149.00. Finley's buyers tried to give me a song and dance when I called them (832-741-4295 in case anyone is interested) saying it was a different quality ring; however, the jewelers said this was not true that it was identical. You treat people like they are dumb, you get what you deserve.

James Clark Aug 6th 2009 10:45PM

This does not surprise me. Finlay "Fine" Jewelry's prices are extremely inflated. Think about it, how can you offer a piece for 50% off with an additional 15% on the weekends unless it is marked up at least 400%. They know how much profit they want to make on a piece and if they over inflate the price they can get the price they really want at the markdown. Also, they don't use the GIA grading system that is recognized the world over. They use some bogus A, AA, AAA & AAAA rating system which means nothing and forget about getting an appraisal on the piece you bought. They can't do it.

James Clark Aug 6th 2009 10:29PM

I LOVE IT! Those B*A*S*T*A*R*D*S are getting just what they deserve. The quality of the merchandise is garbage, they are over priced so the customer is getting ripped off and they treat their employees terribly. Also, when a manager is fired they allow rumors to start about the person accusing them of stealing to ruin the persons reputation. I know from working in the REAL fine jewelry industry that your reputation is everything and the slightest hint of dirt can hurt you from being hired elsewhere

I know this because I was a manager for them for a short time and my District manager Angie and the Regional VP Sue were horrible to work for. Its funny that they have the nerve to call the junk they sell "fine jewelry", they are DEFINITELY not Tiffany & Co. Isn't Karma something?

ronaldtrufant Aug 11th 2009 5:56PM

This what happens when Ivory Tower Management run it. They miss out on what is really happening out there and its there front line people who will be hurt while upper management gets out with there bonus $$$ look for Zales may be next one there sale are off big time!

star11angel Aug 6th 2009 11:20PM

Lmao, MJ Walmart has nothing on Bailey's, you cannot even begin to compare the two...Macy's possibly, but you get what you pay for. 10k gold, L colored diamonds, I3 clarity...that's Walmart...

cferro6 Aug 6th 2009 11:24PM

Remember though...we can all be glade these companies fail when they due to poor upper management and inaccurate pricing...but its the average employee with a family and bills that pay the price. These corporate idiots get fat salaries and move onto the next corporation with the help of CEO friends while the average blue collar worker looses everything. Its happened in banking, retail, manufacturing and the car industry.

Fred Aug 7th 2009 12:19AM

Yes, the market has contracted and when that happens, it's like "musical chairs" - someone doesn't get a seat. BUT in business, you have to always be prepared for the chair to be removed by following sound practices over time like always under-growing instead of trying to match every "bubble", never letting your debts exceed conservative projections of income, keeping a good-sized reserve and retaining a reputation such that when people have to watch what they pay, they will feel safe with your prices, quality and service after the sale. GM forgot it all and now are a probably permanent ward of the government which is a crime as far as I'm concerned.

Teresa Evans Aug 7th 2009 12:42AM

OMG!!!! Did any of you people think about all of our fellow American losing their jobs? Have a little compassion!! Hope it does not happen to you.

George W Bush Aug 7th 2009 1:15AM

Tis the way they be constructed. Some of these folks seem to be suited to wearing an eye patch with a polly parrot perched upon the shoulder opposite the side of their body where resides the peg leg or hook hand. arrrrrrr me mateys, tis the shoals of capitalism we be settin a course for arrrrrr

Debbie Aug 7th 2009 2:00AM

I worked for Finley back in the early 80's and was proud of the company and quality of the merchandise I worked for and with. This said, I relocated to another state and went back to Finley and was so disappointed, especially in the competency of the management team. Like others, I outgrew the company and when they started hiring people for cheaper wages, now obviously to save money, they did cast question on the character and reputations of employees, which is everything in the jewelry business, that had been with the company and were making higher wages, until they quit. This happened to me and I told them that if they were going to accuse me of something, they needed to come right out and do it, which of course they didn't, and I quit anyway because I didn't want to work anywhere that my character and honesty were questioned. After I left the department store's security, not Finley's, caught the Manager and a friend she hired stealing on camera. It happens everywhere.....

In the end, Finley employed so many and it is a shame that they will be hitting the unemployment lines at a time when there just aren't jobs to be had. At least they didn't wait until just before Christmas to do it like so many other companies did. Good luck to all of you in your future endeavors and I truly hope your lack of gainful employment is short termed and your back on your feet soon !!

As for the management team, well they may have made mistakes, but you can't blame them for the economy, unemployment, lack of spending by those that don't have it, or the numerous other store closings that plague our nation. It's easy to judge, maybe we all need to stop and start helping one another to try to get out of this mess !! There is a lot to be said for traditional, grass root values, and maybe that is what we need as a nation again. To start caring about our neighbors, stop spoiling ourselves and our kids with things we really don't need, learn to live more modestly and help each other survive.......I am not talking about socialism, I'm talking about less ME, ME, ME, and more fellow mankind.....just a thought from a dreamer that thinks that we can revive the American Family, stop gangs from taking over our kids, job stress from killing us or taking our health from us, care for our elderly instead of shutting them away in institutions not because they need it but because we don't want to be bothered, and feed our starving neighbors by getting to know who they are and if you have it, through some more beans and potatoes in the pot and sharing what we have.......and more importantly, we can do it all without the need of involving politicians, presidents, and the government......even though the government is suppose to work for us, we seem to work more for it and I personally think we can do a better job when we don't have to involve them.

GOD & AMERICANS NEED TO BLESS AMERICA AGAIN !!!

Troy Aug 7th 2009 2:54AM

The high end life style in America is slowly coming to a close. Wages are going backwards, thanks to global competition and greedy wall street executives betting people can't make the payments on stuff they can't afford, aka housing market.

mike Aug 11th 2009 2:32PM

Some humans deserve what they get........ a rock
thats all they are and humans fall for it..how dumb is that?

Some marketing and designing some imagination thrown in and waaaallaa
you have all the makings of fraud...the more money you pay for a rock ..the dumber you really are....but ya just dont realize it...sad
Thank you Debeers for the great fraud/ripoff mankind has ever witness.

dls031568 Aug 7th 2009 5:14AM

bye bye..... see ya....you were way over priced as it is...... if your a smart shopper can get find some GREAT bargains in pawn shops..... YES pawn shops have some fantastic jewl's..... i have bought some beautiful items.... a solid 18K gold watch for $150..... a 18K gold bangle bracelet encrusted with 40 CT of rubies and emeralds for $850. and it appraised at over $4500..... TRUST ME you can do VERY well at a pawn shop...... anyone why shops retail for jewls is just an idiot plane and simple!!!

bev Aug 7th 2009 7:51AM

Just ask Obama to bail you out. Hes giving away money like he is making it in the basement. Oh yes, thats right, he is giving away our money, taxpayers foot his giving money away, almost forgot.

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