It looks like Fortunoff Fine Jewelry and Silverware LLC could be filing for bankruptcy again soon, according to the
New York Post.
Since last week
rumors have been swirling
that retailer Fortunoff could be sold by NRDC Equity Partners, a
private equity firm that scooped it up out of bankruptcy for $110
million last February. The Post cites sources that say the retailer's
sales have fallen 50% over the year and, "If a deal isn't struck soon,
Fortunoff will likely go bankrupt 'within the next couple of weeks.' "
Continue reading below
Robert Baker, owner of NRDC Equity Partners, has had a run of bad luck lately. The PE firm also owns Lord & Taylor and Hudson's Bay Co., which NRDC had to merge to shore up both retailers capital. Additionally, NRDC, which was a minority investor in Apollo Management LP's $1.2 billion Linens 'n Things Inc. buyout, took a bath when the retailer filed for bankruptcy last year, according to
The Wall Street Journal.
Home furnishing retailers such as Fortunoff are feeling the heat due to the decrease in consumer confidence, and many such as Bombay Co. and Linens 'n Things are liquidating thanks to a lack of financing and 2005 revisions to the bankruptcy code that shorten the time to come up with a restructuring plan. Could Fortunoff face the same glum future? Only time will tell.
- Maria Woehr
Comments
Here's a good analysis of what pushed Linens n Things into bankruptcy. Hint, it wasn't just the economy, it was management:
www.commentsoncredit.com