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Local Jewelry Chain Files for Bankruptcy, Stores to Remain Open

OVERLAND PARK, KN-Krigel's Jewelers is being sold to ARY of Dubai in the United Arab

By Judie Burkhalter | Updated on January 25, 2001

OVERLAND PARK, KN-Locally-owned Krigel’s Jewelers may become a part of a national chain if plans go through to sell the 90-year-old company to ARY Jewelers, a company comprised of bullion dealers and retail jewelers based in Dubai in the United Arab Emirates. As a part of the sales plan, Krigel’s filed for Chapter 11 bankruptcy as a way to protect itself from creditors.

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.

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