STRATEGY ONE > Volume VIII > Number 2

Jewelry Venture continued

“Buxbaum Jewelry Advisors was formed in response to extreme stress in the American jewelry business, which has been hit hard by the Internet jewelry phenomenon as well as the economic slump,” notes Buxbaum Group Chairman and CEO Paul Buxbaum. “Over this past year alone, we’ve witnessed the demise of venerable companies like Friedman’s Jewelers, Whitehall Jewelers, closings of numerous independents, as well as downsizings at Zales and several other chains.”

And if the upcoming holiday season turns out to be as dismal as predicted, many jewelers could be devastated, Buxbaum added. According to the Rapaport News Service, the months of November and December account for 32% of jewelers’ annual sales. The diamond industry, moreover, is $12 billion in debt amid a credit crisis that has left some companies wondering how they will fund their operations. “Hundreds of stores already are closing, and who knows what will happen after the holiday season,” Jorgensen says. “To start or buy a jewelry store requires quite an investment. With credit tightening, those operators who seek to sell their stores are finding they cannot do so. They’re left with one option—liquidating the inventory.”

Indeed, looking further down the road, the Jewelers Board of Trade estimates that approximately 20% of independent stores will go out of business over the next five years.

To help meet this rising demand from troubled retailers, Buxbaum Jewelry Advisors is drawing on decades of experience in both jewelry liquidation and retail operations as it organizes, advertises and executes sales for jewelers of all types.

Gary Jorgensen The new venture has recruited seasoned veterans in order to give clients access to some of the best sales-operations talent in the country. Jorgensen, who heads day-to-day operations, is but one example.

A native of Des Moines, Iowa, he has directed orderly liquidations of hundreds of stores across North America, including sales at such companies as Friedman’s Jewelers, cataloger Sterling Jewelry and Distributing, Inc., and Jacobson’s Department Stores. He is a certified gemologist with more than three decades of experience in both the retail and asset recovery sides of the business. After closing his own jewelry store in 1987, the Iowa State University graduate began his asset recovery career with jewelry liquidator Silverman Consultants. He spent 12 years with that company, and then served as a lead consultant to Buxbaum Group and other major liquidators on various multi-store projects. Jorgensen was with Wilkerson and Associates prior to joining Buxbaum this fall.

“We have known and worked with Gary for many years, including several assignments as our lead consultant on multi-store liquidations,” says Paul Buxbaum. “His knowledge of all facets of the jewelry industry and experience in running liquidations that generate strong sales and net returns will make him a valuable member of our team. We are pleased to have Gary back with us on a full-time basis.”

Gramicci Biking Line continued

and life’ line that—unlike traditional spandex and fluorescent stripe biking wear—allows riders to easily go straight from the bicycle to an office or restaurant.

Consisting of 11 styles for women and 13 styles for men, the line includes pants, capris, shorts, skirts, jackets and performance tees in a variety of proprietary fabrics. The garments incorporate Gramicci’s signature “Never the Norm” washes and finishes, along with an array of special features required for comfortable biking – such as comfortable waistbands and breathable vents.

Buyers who signed up to meet and hear about the biking line and other breakthrough Gramicci items had a donation made in their name to Pure Water for the World. They also got to see what Weening hopes will be a booth that will revolutionize trade show displays. “Our objective was to counter the exorbitant costs of building and transporting a booth and the negative ecological footprint associated with that,” he notes.

“We were able to cut expenses 80% and dramatically reduce carbon emissions associated with transporting the booth without sacrificing the message of our brand at the show.”

More than 85% of the booth was constructed from materials that were recycled or could be recycled. In fact, the netting was donated to Spreadthenet.org, an organization providing mosquito nets to halt the spread of malaria.

To further promote the new biking line, the company staged an auction at the show where attendees bid on four bikes and helmets donated by Raleigh. The bikes were decorated by a creative collaboration of the Gramicci art and design teams. The company also sponsored a contest to see who could make the best wearable design using mosquito netting. Between the two events and the net donation giveaway, more than $6,000 was raised at the show for three of Gramicci’s causes – Outdoor Outreach, Pure Water For the World and Spreadthenet.org.

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