Tough times at Whitehall Jewellers
Whitehall's stock has been gasping for some time, but what seems to have finally put a boot to its throat was the announcement yesterday that CEO-to-be Beryl Raff doesn't want the job anymore. Having formerly worked at J.C. Penney's
And judging by what else the company had to say yesterday, it does appear to be in quite a mess. The company announced that it won't file its 10-Q anytime soon, though it expects to report a loss if it does. Further, it apparently needs additional capital to stay in business and has slowed down its accounts-payable schedules while asking for extensions from its suppliers. At the risk of stating the obvious, when you can't pay your bills anymore, you've got a big problem.
Investors might recall some similarity here to Friedman's -- another troubled jeweler that ultimately went under. Whitehall was investigated for securities fraud last year, and its legal proceedings section in the 10-K runs about two pages -- not a good sign. Though the situations are different, the outcome may ultimately be the same.
No doubt, some investors will be looking to make a speculative play on a recovery. I wouldn't do it. Yes, Wet Seal
There are other ways to get into the jewelry market -- Tiffany
For other shining Takes:
- Movado Still Blinging
- Tiffany's Shiny Quarter
- Can Rebranding Baubles Boost Zale?
- Friedman's Fails Again
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).