Buxbaum Jewelry Advisors wraps up highly successful sale for Henricks Jewelers of Bonita Springs
BONITA SPRINGS, Fla. (6/18/09) – Urged on by the likes of personal finance guru Suzie Orman, millions of Americans now separate their “needs” from their “wants” with a near-religious fervor. And as struggling jewelers know all too well, consumers tend to regard jewelry, in particular, as something they must do without until the economy bounces back. How, then, do you explain the ‘everything’s gone’ outcome of Henricks Jewelers’ going-out-of-business sale, completed last month by Buxbaum Jewelry Advisors, a division of Agoura Hills, Calif.-based Buxbaum Group?
Surpassing its volume projections and coming in under budget on expenses, the firm was able to sell every item in an $8 million inventory that spanned thousands of designer pieces and quality gemstones at the 12,000-square-foot jewelry superstore in Bonita Springs. “This 60-day sale proved that when customers know they are getting exceptional quality and price, they will spend,” noted Stevan Buxbaum, Executive Vice President of Buxbaum Group, one of the largest appraisers and liquidators of retail inventories in North America.
Indeed, the sale succeeded despite multiple challenges. Not only was it held during one of the worst national recessions in memory, but by necessity it also had to be conducted after the close of the tourist season, a time when local economic activity slows considerably. In addition, Henricks had run a “going-out-of-business” sale earlier in the year, but, in fact, did not go out of business after that sale.
“Shoppers and the media naturally were skeptical when Henricks announced yet another going-out-of-business sale,” noted Gary Jorgensen, vice president of Buxbaum Jewelry Advisors, which conducted the sale on behalf of the asset-based lender that took possession of Henricks’ inventory at the direction of a bankruptcy judge. “There was a real danger that people would not believe this second liquidation sale was legitimate.”
To counter this, Buxbaum Jewelry Advisors launched an aggressive marketing and public relations campaign. “We did mailings and signage, reached out to the press, hired sign-walkers and placed 250 commercials a week on cable TV for eight straight weeks,” Jorgensen said. “Ultimately, these efforts succeeded. We beat all of our sales projections and, even with this aggressive promotional effort, came in under budget on our expenses. Our clients were extremely pleased.”
Originally founded in 1982 by Henry Grimes and his son Rick (“Henricks” is a play on their first names) Henricks Jewelers was one of the highest-volume independent jewelers in the United States for much of its history. Its holiday promotions attracted bargain-hunters from across southwestern Florida. The retailer, which was purchased by Luxury Ventures LLC in 2003, expanded to other Gulf Coast locations in Naples, Sarasota and Fort Myers, as well as in Alaska—all of which were subsequently closed. In recent years, however, it had begun losing market share to competitors, and its troubles mounted with the onset of the economic downturn, in part because it was saddled by debt acquired during its failed attempt to expand into local and national markets.
The going-out-of-business sale involved liquidating the entire inventory of Henricks’ flagship Bonita Springs showroom at discounts of 40% to 80% off. It spanned thousands of items, including precious diamonds, rubies, emeralds and sapphires; semi-precious blue topaz, amethysts and pearls; a wide variety of watches (including pre-owned Rolexes), as well as rings, bracelets, necklaces and earrings made from gold, silver and platinum and set with diamonds and fine gemstones. A huge selection of diamond engagement rings was available below jewelers’ wholesale cost.
About Buxbaum Jewelry Advisors/Buxbaum Group - Buxbaum Jewelry Advisors has assembled a team of jewelry professionals that have provided wholesale and retail jewelers with financial solutions for more than 20 years. It offers a wide range of services and can meet the needs of both financially distressed and profitable jewelry retailers and wholesalers. It is a division of Agoura Hills, Calif.-based Buxbaum Group, which has built its reputation for over 30 years as one of the largest liquidators and appraisers of retail and wholesale inventories across North America.
Press Contacts: At Buxbaum Jewelry Advisors, Gary Jorgensen, 623-703-6929; at Parness & Associates Public Relations, Lisa Kreda or Bill Parness, (732) 290-0121 , Sale contact info.: Henricks Jewelers, Bonita Springs, Fla. |
