However, the economic downturn derailed Levinger’s plans, said his attorney, Stephen Carlotti. “It’s the nature of the beast right now,” [...]]]> Speidel, a 105-year-old seller of watchbands, filed for bankruptcy. The Cranston, R.I.-based jeweler has had several owners over the past century, most recently Frederick Levinger, who came out of retirement to acquire Speidel two years ago.

However, the economic downturn derailed Levinger’s plans, said his attorney, Stephen Carlotti. “It’s the nature of the beast right now,” Carlotti said. “Fred has done everything reasonably possible to try to survive. He was unable to do so.”

In January, The Colibri Group, a Rhode Island jewelry maker where Levinger worked for three decades before his brief retirement, closed.

Los Angeles-based Michael Beaudry  designs hand-crafted jewelry. Beaudry’s clientele includes Beyonce, Katherine Heigl and “Gossip Girl’s” queen of bling Michelle Trachtenberg

Among the largest unsecured industry creditors, Michael Beaudry lists: Olympic [...]]]> Jewelry designer Michael Beaudry Inc. and Henry Dunay Designs Inc. have filed for Chapter 11 bankruptcy protection. The filings came within two weeks of each other.

Los Angeles-based Michael Beaudry  designs hand-crafted jewelry. Beaudry’s clientele includes Beyonce, Katherine Heigl and “Gossip Girl’s” queen of bling Michelle Trachtenberg

Among the largest unsecured industry creditors, Michael Beaudry lists: Olympic Diamonds, New York ($253,138), Espeka Israel ($170,453), Inter Gems Claes ($158,513), Diamond Investment Partners, Los Angeles ($110,203), Kothari Trading Co. Ltd., Hong Kong ($107,260), Lili Diamonds, New York ($105,549)

Novel Collection, New York ($76,311), Fancy Colors USA ($76,106), Inga Moubaiajin, Los Angeles ($62,720), Rosy Blue Trading, New York ($59,984), Superb Jeweler, San Francisco ($51,430), Eurostar Belgium Inc ($48,165). Beaudry’s related wholesale business, Centerstone Diamonds, also filed Chapter 11.

Meanwhile, Henry Dunay Designs. whose assets total between $1 million and $10 million and liabilities total between $1 million and $10 million, also filed. ccording to a court filing.
Henry Dunay Designs are carried by high-end stores including Bergdorf Goodman.

Activity at Unique Settings of New York's booth.

“After the initial complaints from many, the general sentiment was fairly upbeat about the promise [...]]]> The JCK Show in Las Vegas drew fewer people than in years past – some estimates had attendance down 40 percent – but most people who showed up were pleased with the outcome.

Activity at Unique Settings of New York's booth.

“After the initial complaints from many, the general sentiment was fairly upbeat about the promise for continued improvement in the business,” said Mark Ehret, a buyer for New York jeweler Jennifer Miller, a retailer jeweler.

Ehret said the Vegas show affords him the opportunity “to meet with so many designers from around the world in one place, both to purchase new items from current partners we already work with, and fresh new finds.” 

Although fewer industry pros made the trip, the ones who did were there to do business, according to local merchants. “The people who normally would look, instead of buy, stayed home. The people who come to buy, bought, but did so in smaller quantities,” said Michael Toback, owner of Myron Toback Inc., 25 West 47^th Street.

Toback, a regular at Vegas, calls the JCK show “the perfect meeting place” to see customers and “maybe spot a trend or two.” This year’s trend: bigger brand names like Judith Ripka and David Yurman lowered their prices and introduced more silver into their lines.

Greg Altieri, a sales executive at Far East Gem, a jewelry manufacturer in New York, said just being at the JCK show puts him better off than his competitors. However, Jerry Natkin, who owns William Barthman Jewelers in lower Manhattan, which caters to the Wall Street crowd, did not attend. “I didn’t have an appetite to look at things I can’t buy,” said Natkin, adding that his customers are not buying like in the “good old days.”

To counter that trend, he brought in a new inventory line of $450 watches for customers who used to spend 10 times that amount.

Laura Aman of Nina Runsdorf Jewelry (NSR), 608 5^th Ave., said the upscale Couture show provides the best venue to introduce new designs and receive feedback on current stock levels. “The atmosphere of Couture exceeded my expectations,” she said. “This is my 12^th show and fourth for NSR, and [in that time] I have never had retailers in such need of my merchandise. For the first time some of my accounts wanted to purchase collections and carry home from the show.”

Aman was one of several exhibitors DDN spoke with who praised the quality of the decision makers in attendance. Even away from the show floor, attendees found value in the educational seminars. Ehret said he attended several early-morning sessions and was surprised how many retail jewelers were there at 7:30 a.m. “It shows the vitality of our industry and everyone’s passion to learn and adapt,” he said. 

Steven Silverstein, chief executive officer of the Israel Diamond Institute, New York office, and a Vegas regular, said many exhibitors and show goers tell him how important it is to be at JCK for perception. “They’re like, ‘what would happen if someone looked for me and saw I sat this one out?” Silverstein said. “Rumors are quick to start [that your company might be in trouble] and difficult to put out.”

Officials from Mayor Bloomberg’s administration visited with the 47th Street Business Improvement District (BID) to discuss solutions to what the BID calls the growing problem of street hawkers.

While the city is sympathetic to the plight of business owners, and acknowledge there is a problem, they [...]]]>

The BID met with city officials regarding street hawkers.

Officials from Mayor Bloomberg’s administration visited with the 47^th Street Business Improvement District (BID) to discuss solutions to what the BID calls the growing problem of street hawkers.

While the city is sympathetic to the plight of business owners, and acknowledge there is a problem, they say there are no clear-cut answers. Pauline Yu, an outreach specialist for the Mayor’s Community Affairs Unit, is serving as the liaison among the BID and various city agencies.

During an interview with DDN, Yu said the hawker problem is a “first amendment issue” and that “our hands are tied.” However, she said the city agencies are continuing their dialogue with BID representatives to formulate “innovative, out of the box” solutions to the hawker problem.

Michael Grumet, executive director of the BID, said the important development is that city officials are engaging in discussions with the BID. “We didn’t have that in the past,” Grumet said. “That’s encouraging.”

Yu said she could relate to the issue. “I was approached by two [hawkers] on my visit. It was not a pleasant experience. It can be very frightening for someone. I am from New York and I can deal with these things, but a tourist coming here? It is frightening for people to walk down the block and be accosted. It’s a tough situation and I feel their [business owners’] frustration.”

Among the potential solutions being considered:

•  Requiring hawkers to get permits or licenses. This idea has gained momentum among BID members. Several U.S. cities require hawkers to obtain a business license before they can engage in any business activity. An Internet search found that most require an application that includes a fee (it can range from a one-time payment of $75 to $50 a month). Applicants must also submit to a criminal background check. BID members are planning to send this information to city officials.
•  Hire more security for the block. Some local merchants suggest that hiring more security would be fruitless unless there were laws to enforce.
• Turn 47^th Street into a street plaza and restrict vehicular traffic. Yu broached this idea, but many merchants say with the number of deliveries here each business day, a street plaza would not make sense; besides, it would not restrict hawkers.
• Create a marketing campaign, i.e., sell the block as a place to visit and do business. The drawback, Yu said, “is you have to clean up the block first before you can market it.” 

The city is listening. “We’re very sensitive to the BID and we’ll continue to talk to other agencies [about helping them],” Yu said. “We want to help the neighborhood as much as we can.”
The next step will be for the city to act. “We need the city to guide us,” said Keith Lipstein, managing director, ABS Partners Real Estate. “We employ a lot of people on this block, we’re a tourist attraction. We have to get their help.”

Ken Kahn, a BID member who is managing director of Kenart Realties, agreed: “Everyone is looking for money, but we’re not. We’re looking for help.”

While the city is sympathetic to the plight of business owners, and acknowledge there is a problem, they say there are no clear-cut answers. Pauline Yu, an outreach [...]]]> Officials from Mayor Bloomberg’s administration visited with the 47^th Street Business Improvement District (BID) to discuss solutions to what the BID calls the growing problem of street hawkers.

While the city is sympathetic to the plight of business owners, and acknowledge there is a problem, they say there are no clear-cut answers. Pauline Yu, an outreach specialist for the Mayor’s Community Affairs Unit, is serving as the liaison among the BID and various city agencies.

During an interview with DDN, Yu said the hawker problem is a “first amendment issue” and that “our hands are tied.” However, she said the city agencies are continuing their dialogue with BID representatives to formulate “innovative, out of the box” solutions to the hawker problem.

Michael Grumet, executive director of the BID, said the important development is that city officials are engaging in discussions with the BID. “We didn’t have that in the past,” Grumet said. “That’s encouraging.”

Yu said she could relate to the issue. “I was approached by two [hawkers] on my visit. It was not a pleasant experience. It can be very frightening for someone. I am from New York and I can deal with these things, but a tourist coming here? It is frightening for people to walk down the block and be accosted. It’s a tough situation and I feel their [business owners’] frustration.”

Among the potential solutions being considered:

• Requiring hawkers to get permits or licenses. This idea has gained momentum among BID members. Several U.S. cities require hawkers to obtain a business license before they can engage in any business activity. An Internet search found that most require an application that includes a fee (it can range from a one-time payment of $75 to $50 a month). Applicants must also submit to a criminal background check. BID members are planning to send this information to city officials.
• Hire more security for the block. Some local merchants suggest that hiring more security would be fruitless unless there were laws to enforce.

• Turn 47^th Street into a street plaza and restrict vehicular traffic. Yu broached this idea, but many merchants say with the number of deliveries here each business day, a street plaza would not make sense; besides, it would not restrict hawkers.
• Create a marketing campaign, i.e., sell the block as a place to visit and do business. The drawback, Yu said, “is you have to clean up the block first before you can market it.”

The city is listening. “We’re very sensitive to the BID and we’ll continue to talk to other agencies [about helping them],” Yu said. “We want to help the neighborhood as much as we can.”
The next step will be for the city to act. “We need the city to guide us,” said Keith Lipstein, managing director, ABS Partners Real Estate. “We employ a lot of people on this block, we’re a tourist attraction. We have to get their help.”

Ken Kahn, a BID member who is managing director of Kenart Realties, agreed: “Everyone is looking for money, but we’re not. We’re looking for help.”

This month, DDN asked several leading professionals:

“I think the industry has changed more in the last few [...]]]> The growth of e-commerce, the loss of domestic manufacturing, and a devastating recession have significantly impacted the jewelry industry in the U.S.   The issues facing the businesses on 47^th Street grow more complex as the pace of change accelerates.

This month, DDN asked several leading professionals:

“I think the industry has changed more in the last few months, rather than the last few years.  Firstly, there has been a gradual shift, over time, away from the traditional informality of transactions.  Fewer handshakes, more paperwork.  The larger bankruptcies in the industry have taught people legal lessons, which they fortunately did not need to know before.  Now, filing UCC’s are more common, tighter controls on trade credit exist, and references are sometimes insufficient.  The downturn in the economy is leading to a contraction in the industry, which is a good thing for its long-term viability.  Fewer speculative purchases and a more focused approach is prevailing. On the retail side, the consumer’s perception has changed towards fine jewelry – as heavy discounting and clearances of stock from store closings have eroded the intrinsic value that precious metals and stones commanded in jewelry.  Hopefully, as the market restructures itself, this will be somewhat reversed.” – Steven Silverstein, IDI, New York

“There has been a loss of cash flow because of the economic downfall, which has made consumers conservative in their spending. It’s not as easy to make sales the old-fashioned way. Most vendors with small capital and old ideas that used to work in small markets are gone. You will see more and more vacant spaces on the street, but I believe the street is changing for the better. Good and smart jewelers are surviving and the extras are leaving. — Mehdi Afshar, TechnaOro Inc.

“Consumers have never had it so good because the middle people have been cut out, and you’re working closer to the actual cost. The downside – a lot of jobs have been lost from this because manufacturing has gone overseas to keep costs down.” – Avery Weisz, Weisz Jewelry & Precious Stones

“More than ever, jewelry stores need to focus on what we do best –provide the best shopping experience possible, which includes everything from customer service, retail therapy, quality, price and value. With the reach and range of goods available online, the items can be commoditized, however, the jewelers’ knowledge and relationship can’t be commoditized.”  – Mark Ehret, Jennifer Miller Jewelry Stores

“The jewelry industry has changed tremendously. We’ve seen the rise and fall of the chain and the breakup of the DeBeers cartel. All of these developments have benefited the jewelry consumer.” — Jeff Levin, Firenze Jewelers

“With the bad economy, business has obviously contracted. I’ve seen manufacturers move out of my building who either needed less space, cheaper space, or who simply moved out of New York.” – Keith Lipstein, ABS Partners

“The Internet has changed the way we do business. It has lowered our profit margins. I see many people buying online but not a lot of important pieces being bought. Some things have not changed. People still want to know the jeweler and the nuts and bolts of the company. When the customer is spending for more important pieces they want to know there is a human being to talk to, that if the ring breaks they can come back to you.” – Richard Winick, Manny Winick & Son Inc.

“The Internet as a place of commerce has transformed the jewelry business. Wise forward-thinking jewelers are investing in developing e-commerce websites to complement their physical retail locations.” — Michael Grumet, BID director

“The jewelry industry has been undergoing changes during the last five years along with every other industry. Information is readily available for research and products for purchase via the Internet than ever before. We believe, however, that business that once may have dwindled within the brick-and-mortar of our industry will see an increase as the economy improves and consumers start to spend.” – Ronnie VanderLinden, Diamex

“Buying habits have changed, with the consumer being more knowledgeable about what’s out there, sophisticated in taste, and making more intelligent buying decisions through the array of information available to educate them. For wholesalers, the use of catalogs has been substantially reduced, while communication through the Internet and jewelry trade shows has increased. Retail store activity is down and jewelry manufacturing in the U.S. is declining though some firms are doing well. The watch business has grown by leaps and bounds, while jewelry imports from India and China have skyrocketed at the expense of European suppliers.” – David Abraham, David Abraham & Co. Ltd.

“Labor expenses in the U.S. has caused much manufacturing now to be done overseas, where up to a few years back most product that we used here on the block was made right here. This is a big change on the manufacturing level, as far as retail sales are down because there is much less street traffic within a block that just does not have the attraction, or mystique that we used to have. The aggressiveness of many merchants frightens the high-end consumer away from 47th Street and many of the once renowned jewelers and retailers have fled to different locations. The bifurcation of the block caused by the Extell construction project has an impact on traffic as well.” – Harvey Nagin, Nagin Jewelry Co. Inc.

“The nature of the business has changed. Many people who were here, father to son, a lot of that is gone. The sons do not want to be jewelers, they want to be lawyers. There have been a lot of changes with manufacturing. You can’t compete with China and India.” – Ken Kahn, Kahn Realty