From TheLedger.com –
A group of jewelry sellers owed $9.1 million from Friedman’s Inc. are trying to force the company into Chapter 7 bankruptcy – the retailer’s second trip to bankruptcy court in just more than three years. Three New York-based jewelry firms – including the U.S. arm of India’s Rosy Blue Group – filed the involuntary Chapter 7 petition against Friedman’s on Tuesday in U.S. Bankruptcy Court in Wilmington, Del. According to court papers, Friedman’s owes two Rosy Blue affiliates about $6.3 million. The company also owes Paul Winston-Eurostar LLC $.19 million and two affiliates of Jay Gems Inc. about $950,000.
The Houston Chronicle –
The Addison, Texas-based retailer, however, is no stranger to the nation’s bankruptcy courts.
The company emerged from Chapter 11 in late 2005 following its own reorganization, under the control of hedge fund Harbinger Capital Partners Master Fund I Ltd. Harbinger and Friedman’s also purchased West Coast retailer Crescent Jewelers’ out of bankruptcy in 2006. Together the company operate some 500 stores under the Friedman’s and Crescent names throughout the U.S.
Harbinger, which invests heavily in financially distressed companies, declined to comment