Many stores could close, the Wall Street Journal reports.
Samuels Jewelers Inc., a 122-store chain based in Austin, TX, has filed a Chapter 11 bankruptcy petition.
The company said in a news release that it plans to "restructure its finances while continuing normal business operations."
"We are confident that we are taking the right steps for Samuels Jewelers," said Farhad Wadia, Samuels Jewelers' CEO. "Our customers around the U.S. can continue to count on an outstanding shopping experience and excellent service whenever, wherever and however they choose to shop with us. As we prepare for another holiday season, our national team members are ready to serve the families who will be shopping with us."
The Wall Street Journal reports that Samuels was controlled by Mehul Chinubhai Choksi, uncle of Nirav Modi, the Indian jeweler wanted by authorities in connection with a massive bank fraud case in his home country. Choksi, who has also been named in the investigation, reportedly resigned from the Samuels's board of directors, of which he was chairman, in February.
According to the Journal, Samuels claims to have debt in excess of $100 million. Plans call for shuttering over 100 retail locations, the newspaper reports, citing court documents.
The case was filed in U.S. Bankruptcy Court in Delaware.
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