Robbins Bros. Files Chapter 11 Bankruptcy

Robbins Bros. Corporation filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. The company said it will remain in control of its operations.

The jewelry retailer has entered into two separate asset purchase agreements. Canadian diamond and jewelry retailer Spence Diamonds, Inc. will purchase Robbins Chicago-area stores and certain Houston-area stores.

The second agreement is with an affiliate of one of the company's investors for the purchase of substantially all of the other assets of the company. Robbins did not name that investor.

The company said it anticipates completing the transactions, “perhaps in as few as 60 days.”

“Filing under Chapter 11 was the best way for Robbins Bros. to accomplish these transactions for the benefit of the Company's customers, employees, suppliers and business partners,” Robbins President Andy Heyneman said in a statement published on the company’s website.

“During this process, the Company's business and operations will continue as usual,” Heyneman added. The retailer said it has sufficient resources to continue to operate its business in the ordinary course, pending the sale transactions.

The company has requested that the bankruptcy court permit it to continue to honor all currently existing customer programs. The company has also requested authorization from the bankruptcy court to continue other business practices designed to ease the company's entry into Chapter 11, and otherwise allow the company to operate business as usual pending closing of the sale transactions.