Tara Jewels Files for Chapter 11

RAPAPORT... Tara Jewels LLC and parent company Tara Jewels Holdings havefiled for bankruptcy, each listingbetween $10 million and $50 million in outstanding liabilities. Wholesaler Tara Jewels LLC currently claims to have between$500,000 and $1 million in assets, according to the June 21 Chapter 11 filing in the Southern District of New York. Theparent company reported up to $50,000 in assets. Both firms are owned by theIndia-headquartered Tara Jewels Ltd, which has a chain of retail stores in its home country. The supplier, which focuses on loose diamonds, gemstones andbranded jewelry, began its wholesale operation in 2006, when it partnered withM. Fabrikant & Sons. Shortly thereafter, the company, renamed as Fabrikant-Tara,filed for protection in a US bankruptcy court. It also sought protectionin 2008, according to the filings. In November 2018, a Mumbai court initiated insolvencyproceedings against Tara Jewels Ltd on behalf of creditors. Tara's customers include Zale Corp, Walmart, J.C. Penney,Sterling Jewelers and Signet, its website notes. It has also co-branded abridal and fashion jewelry line with fashion designer Zac Posen. In 2012, thecompany received an investment from Swarovski subsidiary Crystalon Finanz. Tara Jewels is the second notable jewelry company to enter bankruptcyproceedings in New York this week. Enchanted Diamonds filed for Chapter 7liquidation in the same court on June 20, claiming liabilities of $1.7 million. Image: A Tara Jewels store in India. (Tara Jewels)