ULTRA Diamonds
| Industry | Retailing |
|---|---|
| Founded | 1991 (Gurnee, Illinois) |
| Headquarters | Chicago, IL. |
| Key people |
Daniel H Marks (President & CEO) Joseph Donaghy (EVP and Chief Administration Officer) Kristine Land (Chief Marketing Officer) Mike Bagul(VP Store Operations) |
| Products | Jewelry |
| Revenue | $140 million USD (February 2011) [1] |
| Total assets | $50 million (July 2009) |
| Employees | 1,500 (July 2009) |
| Website | www.ultradiamonds.com |
ULTRA Diamonds is the fifth largest jewelry store chain in the USA and the largest seller of fine jewelry in factory outlet and value centers in the nation. ULTRA is a manufacturer and a direct importer of diamonds, gemstones, and gold jewelry. Ultra operates 102 stores in outlet centers and through 38 other formats, primarily licensed jewelry departments.[2]
History
ULTRA opened its first store in August 1991 in Gurnee, Illinois. Daniel H. Marks, founder, President, and CEO is a third generation jeweler with over 28 years of merchandising and jewelry experience. Prior to founding ULTRA, Mr. Marks was a principal with Marks Bros. Jewelers(Whitehall, Lundstrom).[3] Danny opened the doors on ULTRA Stores with a philosophy of "off-market" pricing in an attempt to generate a revenue base with a lowered profit margin.
Bankruptcy
Though market share grew from 1991 through 2006, a faltering economy struck the fine jewelry retailer and in 2009 ULTRA Stores Inc was one of over 80 other major retailers that filed Chapter 11.[4] bankruptcy. Danny Marks cited in the bankruptcy report a "weak retail climate and a lack of liquidity" as the case which forced Ultra into Chapter 11. The claims were bolstered with the fiscal year end report for 2008 (published in February 2009) showing a decrease of 10.8%, with a 18.9% decrease over the critical holiday season.[5]
However, unlike some other companies that filed Chapter 11 bankruptcy in 2009 ULTRA emerged from the three month bankruptcy with a strengthened capital base. This was accomplished when Bank of America provided a $30 million line of credit and Crystal Capital assumed 56% ownership of Ultra in exchange for the conversion of half of its debt into equity. Ultra's unsecured creditors will hold an 18% ownership share in the jewelry chain, plus a $3 million note. As well as all of these measures, the Ultra's management team took salary cuts while assuming a 26% ownership interest.[6] ULTRA did close 30 "underperforming locations" during the bankruptcy and still operates 178 locations.[7]
Acquisition
On October 24, 2012, Signet Jewelers announced that it has signed an agreement to acquire Ultra Stores from Crystal Financial LLC. and its other stockholders for approximately $57 million in cash. Signet will not assume any debt in connection with the acquisition.[8]
On November 2, 2012, Signet Jewelers announced that it has completed the acquisition of Ultra Stores from Crystal Financial LLC and its other stockholders for approximately $57 million in cash.[9]
Transition
Signet plans to convert most of Ultra’s 140 stores to Kay Jewelers Outlets.[10]
References
- ↑ http://www.signetjewelers.com/sj/pages/financial/news-filings/press-releases?ref=199
- ↑ http://www.signetjewelers.com/sj/pages/financial/news-filings/press-releases?ref=199
- ↑ http://www.ultradiamonds.com/info.cfm?show=careers
- ↑ http://www.costar.com/News/Article/CoStars-Retail-News-Roundup-Apr-12-to-18-2009/111372
- ↑ http://www.costar.com/News/Article.aspx?id=D68F7481404A1B098F28B14BB28119F7
- ↑ http://www.costar.com/News/Article.aspx?id=D68F7481404A1B098F28B14BB28119F7
- ↑ http://www.luxist.com/2009/04/13/ultra-diamonds-files-for-bankruptcy/
- ↑ http://www.signetjewelers.com/sj/pages/financial/news-filings/press-releases?ref=198
- ↑ http://www.signetjewelers.com/sj/pages/financial/news-filings/press-releases?ref=199
- ↑ http://www.jckonline.com/2012/11/20/signet-converting-most-ultra-stores-to-kays