Krigels' currently has 21 stores, but ARY has plans to expand, according to a company spokesperson. ARY also plans to keep all 21 Krigel stores in Kansas, Missouri, Ohio and Illinois open. Currently, ARY has seven retail stores in Dubai.
ARY has agreed to pay 60 cents on the dollar for Krigel's assets. The purchase price will pay off about $6 million of $10 of debt owed by Krigel's. According to the bankruptcy filings, about $16.5 million in assets were on Krigel's books, with about $18.5 in debts. Of the debts, about half was in secured debt and half in unsecured debt. The company also had about $328,000 in tax claims.
Krigel's owes companies that have sold Krigel's jewelry and diamonds. The creditors were asked to agree to the transition plan before Krigel's filed for bankruptcy. Two-thirds of the creditors responded, with all but one agreeing.
ARY has deposited nearly $6 million to help pay creditors. The company will pay $50,000 for the Krigel's company stock and pay Scott Krigel $500,000 a year for three years. ARY may cancel the deal if not completed by the end of April.
Besides keeping all 21 Krigel stores in Kansas, Missouri, Ohio and Illinois open, ARY says employees and executive staff will be kept as well. Krigel's was founded in 1910 by Scott Krigel's grandfather.
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