Shane Co. jewelry store files for bankruptcy

Colorado's Shane Co. jewelry store files for bankruptcy, citing disappointing holiday season

• On 8:02 am EST, Tuesday January 13, 2009

DENVER (AP) -- Colorado-based jewelry store retailer Shane Co., has filed for Chapter 11 bankruptcy protection, saying the business suffered a disappointing holiday season.

The company filed paperwork Monday in U.S. Bankruptcy Court in Denver and asked to be able to continue paying its 542 employees in stores in 14 states, including two stores in Colorado. The court filings show the company has between $100 million to $500 million in estimated assets and liabilities.

"The severity of this past holiday season dramatically impacted existing liquidity requiring the Company to seek this bankruptcy protection," CEO Tom Shane said in a written statement. "I am confident that this action will guarantee that our customers will continue to enjoy the top-notch service, expansive selection, and unbeatable prices that they have enjoyed since the days of my grandfather."

The company listed about 6,000 creditors. Its largest creditor was listed as New-York based Dison Gems, Inc., with about $4.7 million, with the 20 largest unsecured claims totaling $26.2 million, according to court documents.

Besides Colorado, Shane Co., has stores in California, Washington, Indiana and Georgia.

The company said it plans to continue business without interruption while it executes a restructuring plan.

Buzz up!