Chapter 7 Bankruptcy Petition Filed Against Friedman’s

Three New York-based jewelry firms, owed a total of $9.1 million from Friedman’s Inc. are attempting to force the jewelry retailer into Chapter 7 bankruptcy. The group includes the U.S. arm of Rosy Blue, Paul Winston-Eurostar and Jay Gems Inc, according to AP.

Friedman’s owes, according to court documents, $6.3 million to two Rosy Blue associates, $1.9 million to Paul Winston-Eurostar and approximately $950,000 to two affiliates of Jay Gems. The three jewelers filed an involuntary Chapter 7 petition against Friedman’s, its second bankruptcy saga in the last three years.

Friedman’s has 20 days to respond to the Chapter 7 petition, which is different from Chapter 11 bankruptcy in which the company reorganizes under the bankruptcy court’s supervision. In Chapter 7, a trustee is appointed to liquidate a company’s assets.