Michael Beaudry Files for Chapter 11

[diagem]

And the tune goes on....

"Michael Beaudry Files for Chapter 11

(June 9, ''09, 3:11 Edahn Golan)

Los Angeles based jeweler Michael Beaudry Inc. has filled for Chapter 11 Bankruptcy protection on June 4. According to a court filing, the company has an estimated 50-99 creditors and $10 to $50 million in assets. The filing does not disclose the company’s liabilities...."

 

[tradergirl]

The filing does not disclose the company’s liabilities...."

Yet. It has to very shortly or be dismissed.

Again, I wonder why anyone pays asking price these days.

 

[asscher_girl]

Oh no, that''s awful! I met him last year, such a great talented guy. Welll.....I wonder what I can get that $15K Beaudry chain for now

 

[arjunajane]

Oh no! thats sad

 

[mrssalvo]

that is sad b/c he''s such and amazing designer. I hope they can restructure and come out okay.

 

[denverappraiser]

Date: 6/9/2009 7:04:35 AM
Author: tradergirl


Again, I wonder why anyone pays asking price these days.

Apparently not enough are. Here's another one for Penny Previll.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
Here's another one.

 

[tigian]

so sad and depressing that these talented designers are going under.

 

[tradergirl]

There's a seller on Ebay liquidating a pretty good chunk of Leslie Greene inventory (I think she partnered with P Preville but it's definitely the same style). Goofy asking prices. I have some one my watch list waiting for the inevitable give-up.

Here's an example. I offered $750 for these. No response. Yet. LOL

http://cgi.ebay.com/Leslie-Greene-18K-Pink-Gold-Diamond-Earrings-50-OFF_W0QQitemZ260381314519QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item3c9fef8dd7&_trksid=p3286.c0.m14&_trkparms=65%3A12%7C66%3A2%7C39%3A1%7C72%3A1326%7C240%3A1318%7C301%3A0%7C293%3A1%7C294%3A50

 

[denverappraiser]

The Preville auction seems to be hoping to recover 36% of the manufacturers cost from the inventory. That’s a far cry from 50% of MSRP. Whoever buys it will, of course, be hoping to sell it for more but I see a fair amount of room here.

Beaudry isn''t in liquidation and hopefully they''ll be able to work something out with their creditors that pays off a little better than that. There are few winners and lots of losers if they can''t work out a deal.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[TravelingGal]

That''s too bad. And they just opened that store in Beverly Hills late last year. It''s OTT in terms of details.

But I love my MB piece!

 

[HeartingDiamonds]

What a shame.

Michael Beaudry is a talented designer and jeweler. I, too, hope that the filing gives them what they need to bounce back and carry on.

 

[Modified Brilliant]

These are sad times for very talented people in our industry. I was most surprised with Doris Panos filing a few months ago.
But every time another name pops up..it''s newsworthy.

www.metrojewelryappraisers.com

 

[tradergirl]

It is sad in a way but you have to wonder why people didn''t squirrel away the cash while the getting was good. It''s not just jewelry designers though - seeing this same thing throughout the RE business too - realtors, tradespeople, etc. If they couldn''t or wouldn''t save during those boom times, heaven help them now.

 

[isaku5]

I just saw the bad news, and am beyond sorry. I''m 99% sure it was fallout from the current recession, but, nevertheless, it''s a crying shame. Here''s hoping he can restructure and move forward.

 

[diamanda]

Is Harry Winston still doing okay?

 

[Kaleigh]

Sad news indeed. He''s such a talented designer... The list grows and grows.

 

[Moh 10]

Very sad.

Does a manufacturer have to mail back all the customer's diamonds that they were holding while making custom jewelry?
Or are those considered assets that will be distributed by the court?

And for those of us about to ship stones to get set how can we research how financially healthy OUR jeweler is?

 

[Richard Sherwood]

Date: 6/16/2009 10:02:02 PM
Author: Moh 10
Very sad.

Does a manufacturer have to mail back all the customer's diamonds that they were holding while making custom jewelry?
Or are those considered assets that will be distributed by the court?

And for those of us about to ship stones to get set how can we research how financially healthy OUR jeweler is?

First, Michael Beaudry filed chapter 11, which is a reorganization of assets, not a liquidation. It allows them time to get back on their feet and profitable again. What often happens in an economy like this is that large designer/manufacturer's like Michael Beaudry have extended credit to their large retail jewelry clients, who are then not able to pay. This creates an undeniable financial pressure which has to be dealt with. Chapter 11 is one way to alleviate the pressure, and allow a company with a good track record to get on their feet again.

Second, customer's diamonds are not comingled with company assets. They are a separate entity, and handled as such. The company will continue doing business as normal, completing customer orders and returning them as normal.

 

[Kaleigh]

Date: 6/16/2009 11:43:09 PM
Author: Richard Sherwood

Date: 6/16/2009 10:02:02 PM
Author: Moh 10
Very sad.

Does a manufacturer have to mail back all the customer''s diamonds that they were holding while making custom jewelry?
Or are those considered assets that will be distributed by the court?

And for those of us about to ship stones to get set how can we research how financially healthy OUR jeweler is?

First, Michael Beaudry filed chapter 11, which is a reorganization of assets, not a liquidation. It allows them time to get back on their feet and profitable again. What often happens in an economy like this is that large designer/manufacturer''s like Michael Beaudry have extended credit to their large retail jewelry clients, who are then not able to pay. This creates an undeniable financial pressure which has to be dealt with. Chapter 11 is one way to alleviate the pressure, and allow a company with a good track record to get on their feet again.

Second, customer''s diamonds are not comingled with company assets. They are a separate entity, and handled as such. The company will continue doing business as normal, completing customer orders and returning them as normal.

Thanks Richard.