Diamond Park Jewelers
Founded : Acquired in 1997
Activities : Leased retail collection, jewelry collection, high jewelry collection, watches for department stores
Parent Company : Finlay Enterprises
Stockists : 139 locations
Origin : 529 Fifth Avenue
New York, New York 10017
Finlay to Buy Assets of Zale Corp’s Diamond Park
Finlay Enterprises, the largest operator of leased fine jewelry departments in the U.S. and France, is expected to pay $66 million for the assets of Diamond Park. The sale, expected to occur about Oct. 6, will give Finlay 139 more leased jewelry departments (in Marshall Field, Parisian and Mercantile department stores) for a total of 1,097.
Under the agreement of sale, Finlay will acquire Diamond Park’s fixed assets, working inventories and leases and will offer employment to everyone in the 139 departments. In return, Diamond Park will not engage in the leased jewelry department business for seven years and will continue to operate Dillard’s leased departments only until the current contract expires Jan. 31, 1998.
The Diamond Park departments reported combined sales of about $100 million for the fiscal year ended July 31. That represented about 8% of Zale Corp.’s annual sales and 2% of its profits.
Zale and Finlay officials praise the deal as being in the best interests of their companies.
Finlay officials say the acquisition will be financed through an increase in the company’s revolving credit arrangement from $135 million to $225 million. (The additional borrowing capacity also will alter seasonal borrowing needs.)