Finlay Enterprises Inc, a leading retailer of fine jewelry and the largest operator of licensed fine jewelry departments in department stores throughout the United States, has announced its license with Belk Inc will not be renewed when it expires on January 31st 2007.
Belk has entered into an agreement to purchase the assets of Migerobe Inc, a privately-held company that currently licenses fine jewelry departments in 36 Belk locations. As a result of the pending transaction, Belk has informed Finlay it will not renew its license agreements when they expire at the end of this fiscal year. Finlay currently operates in 75 Belk doors.
In fiscal 2005, these 75 locations generated approximately $43 million of revenue. Finlay is currently evaluating the impact these closings will have on its financial results for fiscal 2006 and beyond.
Arthur Reiner, Chairman and CEO of Finlay Enterprises Inc, said, "Although we are disappointed with Belk's decision, our core business remains solid and we are confident that our flexible cost structure will allow us to manage the transition in the most efficient manner possible. We remain focused on our ongoing efforts to add new sources of growth to our business.”
“We continue to be pleased with the performance of Carlyle and have plans in place for continued growth of this business. In addition to the license agreements with Federated for Macy's South, Macy's Midwest, Macy's North, and Macy's Northwest previously extended to January 31st 2009, we also announced last week the extension of our Bloomingdale's agreement through January 30th 2010," he added.
Finlay Enterprises Inc, through its wholly-owned subsidiary, Finlay Fine Jewelry Corporation, is one of the leading retailers of fine jewelry and the largest operator of licensed fine jewelry departments in department stores throughout the United States with sales of $990.1 million in fiscal 2005.
marketing@alchempro.com
