M. Fabrikant Secures U.S. Lending Agreement
August 08, 06
M. Fabrikant & Sons has arrived at an agreement with its
Fabrikant has faced financial difficulties in the past months and was in intense negotiations for credit and credit terms with banks. A Fabrikant partner said recently that the company has high debt to banks and suppliers. During this time clients in
In a release Fabrikant announced that “As a further step in its worldwide business review, Fabrikant has executed an agreement with its domestic lenders as to the basis for their ongoing relationship with the Company. Fabrikant is currently in discussions with its foreign lenders to obtain a similar understanding.”
The company has also announced that as a beginning of a worldwide review of its operations, it is forming a new venture with another Sightholder, Tara Jewels. The new venture, Fabrikant-Tara International LLC, includes the operations of Fabrikant’s subsidiary Fabrikant-Leer International (FLI) and will be headed by Larry Weinman.
The companies have not said what asset Tara Jewels brought into the joint venture, nor did they divulge if Tara paid for taking partial control of FLI and if so, how much. It is unknown if the agreement constitutes a 50/50 partnership.
According to Rajeev Sheth, chairman and managing director of Tara, the new venture with Fabrikant “is expected to provide us with a seamless transition into the
In related news, Matthew Fortgang has taken over as chairman of M. Fabrikant & Sons, succeeding his father Charles ‘Chuck’ Fortgang. Chuck Fortgang will remain as an advisor to the company in his new role as Chairman – Emeritus.
Established in 1895, M. Fabrikant & Sons is one of the oldest diamond and jewelry companies in the world. It began as a modest diamond wholesaler in a single room in the Bowery and has since expanded into a fifth generation family run business. Fabrikant has over twenty companies located in 10 countries worldwide and employs over 1,000 employees.