Jeweler of Over 35 Years Files Bankruptcy

A family-maintained jewelry store, currently running with 20 employees - two of which are a father and daughter  - has decided to file for bankruptcy, and speak openly about the transition of the store, as reported by the Indy Star.

On April 15, C.H., the current family member and owner of H. P.J. in Indianapolis, told the press, "Ultimately, I'm a big boy. Ultimately, it's my fault.  I'm not looking to point the finger at anybody."

C.H.'s father, G.H., founded the family jewelry store in 1973.

C.H. filed for Chapter 11 bankruptcy reorganization and reported assets of almost $3.8 million and liabilities of $5.4 million.

The store's downfall is credited to the recession that has gripped the U.S. and how the effect has caused a severe downturn in public spending of luxury items.

C.H. said, "My core customer didn't disappear. My core customer couldn't spend money anymore."

As well as managing the store's operations, C.H. also owns 85 percent of the business.

C.H. claimed that banks were not forthcoming with loans, while at the same time, his own debtors were filing bankruptcies and not paying the money that they had owed him.

C.H. also noted that retail space is over-saturated with jewelry stores competing for the same dollar.  He said, "There's an overwhelming amount of competition.   Everybody is trying to survive off of a much smaller pie."

Besides keeping the jewelry store open and available to his customers, C.H, is also anxious for customers to know that he plans on keeping every employee on staff.

As noted by the press, C.H. became somewhat emotional in discussing his own feelings, and that of his family's, about filing for the bankruptcy.  He said, "This is not something I obviously wanted to do.   I never thought in a million years this would happen to me and my family."

The bankruptcy was filed on April 13.  The documents show that there is almost $2.5 million owed to PNC Bank - for the store's inventory, accounts receivable, equipment and furniture.

Additional to the PNC debt is sales tax to the Indiana Department of Revenue and advertising expenses due to local media for over $100,000.  A townhome in Steamboat Springs - H.P.J. has a small jewelry store there that they will maintain - adds another $300,000 in debt to PNC.

According to Unity Marketing, a company that studies luxury spending, jewelry stores have seen a 10 percent decline in business during the recession.  Affluent customers are now purchasing their jewelry at discount, outlet and warehouse type stores.

Pam Danziger, the president of Unity Marketing, said, "These changes in shopping patterns among affluents hint at even broader changes taking place within the overall jewelry consumer market at all income levels."

For his store, C.H. is confident that he has made the right decision.  He said, "I'm so excited about the future, things are going to turn around and going to be great."