Market NewsCommentFriedman's files for Chapter 11 - media

Friedman's files for Chapter 11 - media

Friedman's has filed a motion to covert its case into Chapter 11. The motion was granted by the US Bankruptcy Court, District of Delaware, JCK reported. The filing comes following a petition by debtors to force it into Chapter 7 and is the second time Friedman's has gone into Chapter 11 in three years. It filed for Chapter 11 in early 2005 and emerged as a reorganized company later that year, according to the report. It said based on court papers that Crescent Jewelers - a wholly owned subsidiary of Friedman's - also plans to file a Chapter 11 case. The company estimated its assets are between $100 and $500 million, and its debts are more than $100 million, the report said. Top creditors include Sumit Diamond ($7.5 million), Rosy Blue ($6.2 million), and Masterpiece Diamond ($3.3 million), it said. The report cited the company as saying it took this action because its "revenues failed to meet expectations, as it experienced "declining store revenues ... infrastructure and expenses became disproportionate to revenues."

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