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http://www.nationaljewelernetwork.co...f8d78fbbcbc16c

Amid debt, Colibri Group seeks receivership
January 15, 2009

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Providence, R.I.--A private equity firm is petitioning a Rhode Island court to place jewelry manufacturer The Colibri Group into receivership, a legal action in which a court-appointed receiver takes over the company to handle its assets and run its financial affairs, court papers show.

According to a petition filed on Thursday morning in Providence Superior Court, in Providence, R.I., Founders Equity SBIC, the majority holder of Colibri Group stock, stated that it "is informed and believes that [Colibri Group] is insolvent and unable to meet its obligations as they become due," the petition states.

The Colibri Group also, according to the petition, "is far in arrears in payment of its obligations and there is a danger of dissipation and depreciation of the assets of the defendant."

Colibri Group's board of directors and substantially all shareholders authorized the filing of the petition, the document states, and Colibri Group President James Fleet signed it below a statement that reads, in part, "I...consent to join with [Founders Equity] in seeking the relief sought herein."

Founders Equity is asking the court to appoint a temporary receiver--and eventually a permanent receiver--to take charge of Colibri Group's affairs, assets, estate, effects and property to preserve it all in the interest of creditors.

A hearing on the matter is scheduled for 3:30 p.m. today in Providence Superior Court in Rhode Island, Superior Court spokesman Craig N. Berke confirmed to National Jeweler.

Providence, R.I.-based Colibri Group manufacturers and distributes jewelry, lighters, smoking accessories and clocks, according to the company's Web site.

Its brands include Colibri, Seth Thomas, Dolan Bullock and Krementz.

Colibri Group sells its products through 20,000 retail outlets in the United States, including both chain and independent stores.

The company was founded in 1928, alongside the invention of the world's first automatic lighter.

Editor's note: A spokesman from the Rhode Island Judiciary confirmed to National Jeweler on Jan. 15 that Rhode Island Superior Court Associate Justice Michael A. Silverstein appointed Providence attorney Allan M. Shine as temporary receiver for The Colibri Group. This gives creditors and other interested parties notice that in 20 days, there will be a move to appoint a permanent receiver.