Monday, March 2, 2009

Fortunoff Bankruptcy Non-Sale

Last week, Fortunoff announced bankruptcy and was ordered by the courts to liquidate approximately $212 million in inventory. In a press release the company stated, " Customers will find tremendous savings on everything in the store, including fine jewelry and watches, antique jewelry and silver, everything for the table, fine gifts, home furnishings including bedroom and bath, fireplace and outdoor furnishings."

Turns out the Fortunoff liquidation sale is turning out to be very similar to the much publicized Circuit City sale, or non-sale. Jewelry and china are discounted just 10% off. Diamond suds and solitaires are only 15% off.

As a knowledgeable consumer you know that the price of gold is skyrocketing but you also know that the diamond industry is dead. The price of small stones are down about 20% and larger stones (2 carats to 7 carats) are down even more. So when shopping the Fortunoff bankruptcy sale or your local jewelry shop, just remember a sale has provide a consumer with some sort of value to really be considered a sale!

Find out how to calculate the real value of gold on Wiki Answers. Oh, the company is only accepting credits and gift certificates until March 8th, so cash them in now. Maybe a bigger markdown will come soon there after.


Anonymous said...

The sales usually start off with a lower percentage off, but as the weeks progress, the discount increases. So it's like a game of Prisoner's Dilemma, do you buy it now while it's in stock for 10% off...or do you wait until it hits 50% off but the item is no longer in stock. I read somewhere that the liquidation will take place over a period of 2 months, so probably in another week or two, the discount will increase. I know when I first heard "liquidation" I thought at least 50% off retail. But after reading some more about the process, it's not financially sound for the liquidation companies.

These liquidators (there are 6 for Fortunoff) had to bid in order to win the right to liquidate the inventory. So they are at least trying to break even with their initial cost, and than make some money in the end (it is their livelihood after all). I'm probably going to go next week and see what's out there, but unless something really grabs my attention, I'll just keep going back to see what the inventory is like with the corresponding discount.

david said...

The New Jersey DECORATING EXCHANGE will honor all FORTUNOFF gift cards, reward certificates and merchandise credits against a minimum sale. The FORTUNOFF CUSTOMER DOES NOT END UP WITH AN EMPTY SHOPPING BAG. The Exchange is located on 3 New Bridge Road in River Edge, New Jersey. Call 201.342.0110 for details.