Fortunoff's Declares Bankruptcy

I have very strong family connections with the department store founded by Max Fortunoff in 1922 in Brooklyn so when Mrs. Lawhawk informed me that the store was declaring Chapter 11 bankruptcy and that it may be bought out by Lord and Taylor, I was truly saddened.

Jewelry and home furnishings retailer Fortunoff has filed for Chapter 11 bankruptcy and has agreed to sell its business to an affiliate of NRDC Equity Partners, which owns the Lord and Taylor department store chain.

The sale is expected to close in early March, subject to bankruptcy court approval and other conditions.

The owner of Lord and Taylor plans to open branded Fortunoff jewelry departments as well as home and bridal registry areas in its 47 stores.

Fortunoff was founded in 1922 and operates about 20 stores in New Jersey and New York.

Fortunoff, which generates about $450 million in annual sales, has been struggling with lackluster sales since 2004.

The company had been doing poorly for several years with lackluster sales. No doubt that competition with Bed Bath and Beyond and Linens n' Things had something to do with it as well. Both stores had a national reach and could boast better prices.

I grew up in Fortunoff's, especially the Westbury location. The store is famous for its bridal and gift registries and its tremendous selection of housewares and jewelry along with its superior customer service.