DEL.ICIO.USUpdated: 10:12 a.m. January 13, 2009
Shane Co. jewelry store files for bankruptcy
Associated Press
Tuesday, January 13, 2009
DENVER — Now, you have a friend in bankruptcy court. Shane Co., the jewelry retailer that operates four stores in metro Atlanta, has filed for Chapter 11 bankruptcy protection, saying the business suffered a disappointing holiday season.
The company said it plans to continue business without interruption while it executes a restructuring plan. The metro area stores are in Alpharetta, Duluth, Kennesaw and Morrow.
JOHN SPINK / jspink@ajc.com
Employees arrive to work early Tuesday at the Shane Company in Duluth at 3300 Steve Reynolds Boulevard. The company said customers would see little change as it restructures its debt.
The Colorado-based company is known for the distinctive radio ads and the tagline “Now, you have a friend in the diamond business,” delivered in a nasal monotone by CEO Tom Shane.
The company filed paperwork Monday in U.S. Bankruptcy Court in Denver and asked to be able to continue paying its 542 employees in stores in 14 states, including two stores in Colorado. The court filings show the company has between $100 million to $500 million in estimated assets and liabilities.
“The severity of this past holiday season dramatically impacted existing liquidity requiring the Company to seek this bankruptcy protection,” Shane said in a written statement. “I am confident that this action will guarantee that our customers will continue to enjoy the top-notch service, expansive selection, and unbeatable prices that they have enjoyed since the days of my grandfather.”
The company listed about 6,000 creditors. Its largest creditor was listed as New-York based Dison Gems Inc., with about $4.7 million, with the 20 largest unsecured claims totaling $26.2 million, according to court documents.
Besides Colorado and Georgia, Shane Co. also has stores in California, Washington and Indiana.
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