M. Fabrikant & Sons Debts $363 million

According to court records, M. Fabrikant & Sons has $363 million in debts and $225.9 in assets. On Friday, the company filed for Chapter 11 protection in the Manhattan U.S. Bankruptcy Court after its lenders froze the company's bank accounts, CEO Matthew Fortgang said in court papers.

Fabrikant owes $161.9 million to the banks, $36 million to other creditors and $124 million to its non-bankrupt subsidiaries, including Fabrikant-Tara International, court records show.

Two factors that led to the company’s financial hardship arise from the protection request. Fabrikant was harmed by a decline in purchases by Wal-Mart Stores and the bankruptcies of Friedman’s and Crescent Jewelers, which led to “substantial” write-offs, to the court papers.

The other factor is “unfavorable” interest-rates tougher borrowing rules imposed by the banks following the company's 2005 financial results – sales of $370 million and a net loss of $12.6 million.