Is Blue Nile going out of business?

[silverlatka]

Have now heard from several in the trade that Blue Nile is not paying vendors and may be going out of business.

Does anyone have reliable information?

 

[Rfisher]

That would be quite strange if true, as Blue Nile is still listed here as a PS featured sponsor.

 

[Dizzie]

That would be quite strange if true, as Blue Nile is still listed here as a PS featured sponsor.

That was the case with Enchanted when they went MIA as well. We cannot really relate to that.

Trade opinions would have been helpful at this step, I wonder however whether our trade members actually can comment on that kind of topic. Could be legally risky for them, should this be the case

 

[Rfisher]

That was the case with Enchanted when they went MIA as well. We cannot really relate to that.

Trade opinions would have been helpful at this step, I wonder however whether our trade members actually can comment on that kind of topic. Could be legally risky for them, should this be the case

Was Enchanted Diamonds really on the featured sponsor list? I can’t remember that.
But I’m about positive I remember after the ED fiasco, but before the ‘Pricescope guaranty program’ idea was floated -
Someone vested and in the know posted randomly (and it’s maddening I can’t find it) that ‘many up high in the trade business knew what ED was doing and knew for awhile it was unsustainable’ or something like that....

Edited to add- I see now that Enchanted Diamonds stopped being a PS featured sponsor sometime before early 2015 so thats a bit of time between then and their bankruptcy

 

[Rockdiamond]

I know of no such rumors. That does not mean they don’t exist but....
A few points :
There’s no comparison between ED and BN in terms of size, or credibility. BN dwarfs whatever ED was. Secondly- as good as PS mgmt is ( and they are) it would not be possible for anyone to be able to monitor very much at this moment.

 

[silverlatka]

Confirmed that they've just told all vendors that outstanding invoices will only be paid after 120 days.
Troubling sign.

 

[Rockdiamond]

Hi @silverlatka
What I find troubling is people jumping to conclusions.
Given that BN- and most other large diamond companies don't have much hope of even shipping for the next month, a company needing more time to clear outstanding invoices is not surprising at all.
I'm quite sure many businesses- in all fields- with have to cope with similar situations.

Also interesting that you managed to speak to ALL BN's vendors.....how does that work?

 

[oldminer]

No doubt a large firm with more than the usual overhead could be experiencing a short term crisis due to the Covid threat right now, but in just a few weeks or a couple months, many things, such as love and romance will come back pretty strongly although nearly everyone will have less money, or less of an affluent attitude, and possibly no job to earn money for an more extended period of time. I fear many vendors, not just some of the ones affiliated with BN, may experience hardship that will drive them out of business. Delays on payment can really hurt small businesses and suppliers who have little access to money sitting idle elsewhere. Government bailouts in the USA won't broadly be available abroad. India, the source of many diamonds, can't readily print money and pass it out like we can here. There will be many dealers who will close and never reopen overseas. Delays in receipts may drive such a decision. BN is large enough to tell many vendors what it is going to do and remain in business for a decent grace period. However, we are in mostly uncharted waters.

 

[Rockdiamond]

I agree David- uncharted waters.....which is why it's crucial for us to keep calm.
No one knows what the other side of this looks like. Yet the sentiments you expressed - about how certain things we cherish are part of us- deep inside- they can't be "erased"
I like that.

 

[Karl_K]

I'm quite sure many businesses- in all fields- with have to cope with similar situations.

Its that way all over, guy I know who owns a machine shop has been notified that payments on POs has been suspended for 120 days from some major corporations.
One even said ship what is outstanding and we will pay in 120 days.
He sent them an email back that if they want the parts they pay before he ships.
He has had to lay almost everyone off and he is running the shop with 2 people to make medical parts for one client.

 

[yssie]

@silverlatka What aspect(s) of the industry are you a tradeperson of?

I see that the PS policies don't require that tradepersons reveal their businesses to consumers:
https://www.pricescope.com/content/forum-policies

Members of trade at minimum must identify themselves to the Pricescope administration with thier personal name and business name. They must also take on the trade badge.

 

[silverlatka]

I was surprised myself and was sharing something I thought might be helpful for the community to have on the radar. I don't see the need for personal attacks.

In any case, feel free to do your own research. It was a mass email that several vendors confirmed receiving.

It would not be the first time a private equity company with a lot of debt goes bankrupt, and the vendor that confirmed said that the company was struggling even before this crisis.

 

[lovedogs]

I was surprised myself and was sharing something I thought might be helpful for the community to have on the radar. I don't see the need for personal attacks.

In any case, feel free to do your own research. It was a mass email that several vendors confirmed receiving.

It would not be the first time a private equity company with a lot of debt goes bankrupt, and the vendor that confirmed said that the company was struggling even before this crisis.

Not paying invoices until after 120 days (given the current crisis in which much of the trade is at a complete standstill) doesn't mean they are going out of buisness.

 

[Rockdiamond]

It was a mass email that several vendors confirmed receiving.

My apologies- it was not my intent to personally attack anyone. I see how your statement was derived.
It does raise eyebrows when a new trade member comes on and the first thing they have to say seems....well, questionable. Alarmist.

 

[yssie]

I was surprised myself and was sharing something I thought might be helpful for the community to have on the radar. I don't see the need for personal attacks.

In any case, feel free to do your own research. It was a mass email that several vendors confirmed receiving.

It would not be the first time a private equity company with a lot of debt goes bankrupt, and the vendor that confirmed said that the company was struggling even before this crisis.

No attack intended from me either - I apologize, I worded my question aggressively. I always like to know where vendors work in relation to me, an end consumer.

 

[Rfisher]

I’d sure like it if all trade badge members had their relation to the business easily seen.

 

[Rockdiamond]

I’d sure like it if all trade badge members had their relation to the business easily seen.

I'm with you on this .....
@silverlatka - this is in no way personal.
"Regulars" here are very much acquainted with each other- many, even in person. If you've been reading this forum for a while, you'd have seen many cases of vendors, or tradespeople, that came and proved to be unreliable. Again, nothing personal.
I can confirm the letter sent by BN to their vendors
Yet, personally, I believe it's:
1) not indicative of anything definitive.
2) there's more to the letter but....
3) as a member here, as well as a member of the diamond trade, I feel a responsibility to responsibly share info. Many times trade members do have inside information that is not ethical to discuss publically.


It's an uncertain time- of that we can be sure.
I think it's important ( and healthy) not to freak out about things needlessly....
No one can predict what will happen to any number of companies- it is what it is.
The letter, in this context, means nothing.

 

[Bron357]

I would suggest that every business is experiencing difficult times. As a member of PS I might offer my thoughts or experience on various vendors but I can’t predict, no one can, how these wonderful, reliable and trustworthy businesses might come out the other side.
My favourite jeweller here in Sydney is closed. His is a 35 year business, same location. His customers, like me, are staying home, his passing trade (he is in the City) is non existent as virtually all work places, businesses, visitors have stopped. The City centre is like a ghost town. His staff are on paid leave (if they have it) or unemployed. He is still paying rent on his store, still paying for security and insurance. He has stopped using his bench jewellers, his gemologist, he isn’t buying or ordering in gems for clients. So the troubles travel down the supply chain.
Personally I’m not buying anything other than essentials as I don’t know how long this situation will last. I’m sure there are many many people like me, people who otherwise shop and support a multitude of businesses, who are now just staying home, reducing expenditure and waiting until things get better.

 

[whitewave]

I would suggest that every business is experiencing difficult times. As a member of PS I might offer my thoughts or experience on various vendors but I can’t predict, no one can, how these wonderful, reliable and trustworthy businesses might come out the other side.
My favourite jeweller here in Sydney is closed. His is a 35 year business, same location. His customers, like me, are staying home, his passing trade (he is in the City) is non existent as virtually all work places, businesses, visitors have stopped. The City centre is like a ghost town. His staff are on paid leave (if they have it) or unemployed. He is still paying rent on his store, still paying for security and insurance. He has stopped using his bench jewellers, his gemologist, he isn’t buying or ordering in gems for clients. So the troubles travel down the supply chain.
Personally I’m not buying anything other than essentials as I don’t know how long this situation will last. I’m sure there are many many people like me, people who otherwise shop and support a multitude of businesses, who are now just staying home, reducing expenditure and waiting until things get better.

I’m not spending a dime right now. I only leave the house every 1.5 to 2 weeks, No take out. Just old fashioned grocery and cooking.

 

[Garry H (Cut Nut)]

many things, such as love and romance will come back pretty strongly a

And there will be huge demand for push rings as the birth rate is gunna go sky high

 

[Daisys and Diamonds]

I will add blue nile (im serouse and genuine) to the list of people im now worried about
this is effecting many many bussiness outside of those deemed essential services and people's livelihoods are on the line
Hopefully some of their key markets will recover quickly
There may still be enough descenaory (excuse my spelling) spending around by some that will now not be spent on holidays abroad and on cruises

 

[Karl_K]

I dont like to be all doom and gloom but there isn't one company on earth that we can say for certain will be in business 1 year from now.
A bunch of tow truck companies in my area have already folded despite being considered essential.
The guy I always use who is a small owner operator says he has had 10-20% of the business that he had last year.
He said his house and his tow truck are paid for so he will be ok as long as he and his family can stay healthy but if he was making payments on his truck the current level would not support it and many are going to go under.
There is going to be a tow truck shortage on the other side of this in my area.

 

[Texas Leaguer]

There is a thinning out process that takes place any time there is great disruption. And this may be the greatest disruption of our lifetime. The strongest and most agile businesses will survive, and possibly thrive in a market with fewer competitors.

The effect of the crisis from a business standpoint will be to reward financial strength, best practices, and innovation - not necessarily in that order. Businesses that survive and new ones that emerge will be operating in a different world.

As painful as this is and will continue to be for most businesses and their employees, the future will see new opportunities popping up all around us. Those in a position to keep their eye on the horizon, and an open and optimistic mindset, will succeed.

This will require a dedication to challenging the status quo, but also a deep appreciation of those core values that have always driven successful businesses.

 

[Johnbt]

According to Barrons in 2012 they were taking 45 days up to 120 days to pay, so over 120 isn't too big a change (except to the vendors who need their money now. )

"Unlike many other jewelers, it carries little inventory, and purchases most diamonds only after receiving an order. Customers typically pay within several days of ordering, while the company says it doesn't have to pay its suppliers for 45 to 120 days. "

www.barrons.com/articles/SB50001424053111904081004577434310250163308

___________________

And from page 2 of their 2016 10-K filing with the U.S. Securities and Exchange Commission, 30 to 120 days is part of their business plan.

www.sec.gov/Archives/edgar/data/1091171/000109117116000189/nile-1032016x10k.htm

"Differentiating Factors and Value Proposition

We have developed relationships with a large number of diamond suppliers with whom we have exclusive agreements as an online retailer.
Our efficient operating model also provides for negative working capital benefits, since payments are received from customers within a few days of shipment of their order, but our vendor payment terms are typically in the 30-120 day range."

 

[AV_]

This is the time for rummors ,(

 

[headlight]

Let's all hope it isn't true. In the spirit of keeping positive, it isn't uncommon for companies during a time like this to ask for better payment terms, and that doesn't mean they are going out of business. My husband (not in the jeweler business) has already had customers he supplies coming to him requesting greater time to pay than their usual 30 days. Because of the pandemic, there is a period of revenue that was lost and it will never be made up. Let's hope that for the businesses that are not able to weather the storm, that they will still make good on the transactions that have already taken place that they still need to deliver on.

 

[OoohShiny]

The news hub

As a leading global news agency, AFP offers quality multimedia content in video, text, photo and graphics in six languages.

www.afp.com

For UN Secretary-General Antonio Guterres, the extraordinary upheaval spurred by the virus presents a real danger to the relative peace the world has seen over the last few decades.

The disease "represents a threat to everybody in the world and... an economic impact that will bring a recession that probably has no parallel in the recent past," he said.

"The combination of the two facts and the risk that it contributes to enhanced instability, enhanced unrest, and enhanced conflict are things that make us believe that this is the most challenging crisis we have faced since the Second World War."

 

[SandyinAnaheim]

There is a thinning out process that takes place any time there is great disruption. And this may be the greatest disruption of our lifetime. The strongest and most agile businesses will survive, and possibly thrive in a market with fewer competitors.

The effect of the crisis from a business standpoint will be to reward financial strength, best practices, and innovation - not necessarily in that order. Businesses that survive and new ones that emerge will be operating in a different world.

As painful as this is and will continue to be for most businesses and their employees, the future will see new opportunities popping up all around us. Those in a position to keep their eye on the horizon, and an open and optimistic mindset, will succeed.

This will require a dedication to challenging the status quo, but also a deep appreciation of those core values that have always driven successful businesses.

I guess my lowly inconsequential field is doing excellent as I can't even respond to the uptick in phone calls requesting service. I've heard from MANY business owners in my field that they can't float their businesses for 4-6 weeks, and I wonder, what have they been doing with their money for so many years? I've only been in business for 4 years and have enough in savings to float business expenses for a year without income... AND I buy diamonds.

Even though I'm all for "thinning of the herd" and "survival of the fittest" when it comes to business, I wouldn't like to have less competitors....there are few enough of us quality businesses to begin with.

 

[blinginggirl]

Have Blue nile & B2C jewels been pulled out from pricescope? I can't find any diamond of them here anymore..

 

[bling_dream19]

I am seeing some good sales on their site!