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 Whitehall Jewelers Holdings Inc. is the latest jeweler to file for Chapter 11 as consumer confidence has plummeted and creditors are opting for
out-of-court restructurings resulting in a number of quick liquidations.
Whitehall's board approved entering into a debtor-in-possession agreement of up to $80 million, including a $12 million standby letter of credit sublimit with Bank of America NA, Wells Fargo Retail Finance LLC and GMAC Commercial Finance LLC. The jewelry retail chain, which operates stores under Whitehall and Lundstrom brands, had $207.1 million in assets and $185.4 million of debts. The company received a default notice for its failure to make payment on a $3.06 million promissory note to Fabrikant Receivables LLC, and a default notice for its failure to make payment on a $2.07 million promissory note from Rosy Blue Inc. Whitehall had until Saturday to pay these notices or be in default. Ironically enough, Whitehall scooped up 78 stores from bankrupt Friedman's Inc. in March for roughly $14.5 million. Friedman's fell on similar hard times, when a group of creditors submitted an involuntary Chapter 7 petition against it on Jan. 22, and the company was forced to sell its assets. - Maria Woehr Other recent jewelery bankruptcies include:Lexington Jewelers Luxury Ventures LLC Lexington Jewelers Exchange Inc. Four Points Corp. Diastar Inc. OTC International Ltd. L.I.D. Ltd. Categories Deal Video
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