Englewood-based jewelry- store chain Shane Co., headed by Tom Shane, the famous pitchman who dubbed himself “your friend in the diamond business,” filed its bankruptcy-reorganization plan Wednesday in U.S. Bankruptcy Court in Denver.
The 20-store retailer originally filed for Chapter 11 protection from creditors in January 2009, after a dismal luxury-goods shopping season and after it cost $36 million to fix an inventory-management system that was purchased for $8 million to $10 million.
The system failed to provide accurate inventory numbers and led to the chain being substantially overstocked in the fall of 2007.
The reorganization plan calls for the continued operation of the company and for payment in full to secured lenders, according to the court document.
Shane, the third generation of a family ownership that started in 1929, had loaned the company more than $30 million. He has agreed to defer principal repayments on his $10.5 million debtor-in-possession loan, payments on the $20 million in loans he made prior to the bankruptcy, and other claims totaling roughly $3 million he holds against the company while payments are made to unsecured creditors.
Shane also agreed to loan the company 50 percent of federal income-tax refunds he has collected or will collect from net operating losses of the company.
As of June 26, the company listed its total liabilities at $112.4 million, while assets were $96.5 million.
Under the reorganization proposal, Shane agrees to cap his compensation at $1.42 million per fiscal year.
“We have been working diligently to develop this reorganization plan, which serves the best interests of all parties involved,” Shane said in a prepared statement. “With this filing, Shane Co. takes a giant leap toward completing the reorganization. I am humbled by the loyalty and overwhelming support of our customers, the entire vendor community, and of our employees during this process.”
Femur fiasco.
MillerCoors chief exec Leo Kiely is convalescing in his Cordillera home following surgery on his broken right femur.
The accident occurred July 30 when Leo fell while stretching after an exercise session. The surgery July 31 required 21 pins to be placed in the broken bone.
“The good news is we were up in the mountains where they have really good surgeons who are used to operating on broken bones,” said Leo’s wife, Susan. “The bad news is we have to stay put.”
Leo continues to work running the Chicago-based brewing company via conference calls and e-mails.
“I affectionately call myself Nurse Ratched,” Susan said about the fictional nurse in “One Flew Over the Cuckoo’s Nest.” If you want to send well wishes, e-mail Susan at sdkiely@aol.com.
Eavesdropping
on a waiter to a teenager at the Black-eyed Pea at Broadway and Belleview: “Our special today is chicken pot pie.”
“Oh, boy! Three of my favorite things.”
Penny Parker’s column appears Tuesday, Thursday, Friday and Sunday. Listen to her on the Caplis and Silverman radio show between 4 and 5 p.m. Fridays on KHOW-AM (630). Call her at 303-954-5224 or e-mail pparker@denverpost.com.
