Bailey Banks & Biddle Parent Files For Bankruptcy
Alvarez & Marsal will serve as restructuring advisor for Finlay, which operates three jewelry store chains.
August 7, 2009
The New York-based parent company of luxury department store jewelry chain Bailey Banks & Biddle has filed for Chapter 11 bankruptcy protection in New York.
Finlay Enterprises Inc. declared $331.8 million in assets and $385.4 million in debt in its voluntary petition. In addition, it noted that Gordon Brothers Retail Partners LLC has agreed to serve as the company's "stalking horse bidder" in its bankruptcy process, overseeing merchandise sales and store closings. Gordon will be paid a base fee of 4.25% for merchandise that is sold.
Alvarez & Marsal North America LLC's David Coles will serve chief restructuring officer of Finlay, which oversees 67 Bailey Banks stores, as well as 34 Carlyle & Co. and four L. Congress jewelry store locations.
Finlay generated $754.3 million in revenues from the sales of bracelets, diamonds, earrings, necklaces and other jewelry products in fiscal 2008.
The bankruptcy filing covers all of the company's subsidiaries out of which Bailey Banks, a jewelry vendor founded in 1832, has the largest number of specialty jewelry stores.
Weil, Gotshal & Manges LLP is serving as counsel to Finlay.
The company's five largest unsecured creditors include U.S. Bank N.A., which is owed $40.5 million; Vaishali Diamond Corp., owed $2.7 million; Royal Jewelry Mfg Inc., owed $2 million, Richline Group, owed $1.8 million; and B H Multi Com Corp., owed $1.2 million.
Moody's Investors Service assigned a probability rating of "D" to the company following its bankruptcy petition.
Judge James Peck is overseeing Finlay's reorganization filed under number 09-14873.
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