Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
How to: Create a Viable Plan for Passing on the Business
Identified someone willing to take over the jewelry business? Good. Here’s what’s next.
It’s no secret that the jewelry industry is aging. Yet, despite the greying of the field, a recent Jewelers of America survey showed that a quarter of jewelry store owners, the majority of whom are over age 50, have no succession plan in place.
While it may be tempting for jewelers to avoid thinking about giving up the business they’ve spent years building, it is important to put a plan in place long before retirement time is nigh.
The first step in creating a succession roadmap is identifying whether there is someone to pass the business onto, said Jeff Gordon of The Gordon Company, which specializes in managed liquidations for retail jewelers.
However, it is not always a given that next generation will want to run the family store. Another option, then, is identifying a manager or employee closely involved with the business who would be a good candidate.
Whoever takes over the business must be able to find the proper financing to purchase it.
Going to the bank is often not an option, as many banks do not like to finance jewelry stores. Yet it’s also not smart for the jeweler to personally handle the financing either.
Hayes said this is one of the biggest mistakes a retiring owner can make, as they run the risk of the new owner not paying, potentially forcing them to come out of retirement and salvage the business. “By the time they take over the store again, inventory is a fraction of what it was and their reputation isn’t the same,” he said.
One of the best solutions in terms of financing is to hold a retirement sale. It’s a win-win situation, said Hayes: “The owner gets their money for retirement and the new owner has a store.”
In the case of a family succession, it also allows the owner to cash out on their store’s assets and perhaps help finance a younger member of the family who is taking their place.
Gordon recommended hiring an experienced professional to help with such a significant sale.
“They may be excellent jewelers, but when it comes to knowing when or how much to discount, they
The sale offers not only the opportunity to dispose of aged inventory, but also the possibility to attract new customers, lured in by the reduced prices. Gordon said his company has managed to increase the customer base by more than 30 percent in some instances, helping new owners start out on the right foot.
Long before the sale, jewelers must consider inventory levels and overall mix when creating succession plans, said Darren Fries, head of the consulting arm of liquidation and asset recovery company SimplexDiam Inc. SimplexDiam began offering consulting services just last year.
A reputable consultant can help determine how much inventory will be sold during the sale. Otherwise, he said many jewelers maintain inventory levels that simply cannot be sold during the event and may have to wholesale the balance of their inventory well below cost.
The overall mix, too, should not be ignored.
Loose diamonds and colored stones can become difficult to sell, said Fries. “One might consider mounting these products onto finished goods, which are much easier to sell at the retail level,” he said.
Another key element in any succession plan is considering the terms of the lease if there is one.
When the time comes to renew, business owners should consider when they plan to retire, said Fries. “Lease terms could be lengthy, and if the decision to retire comes before the end of the lease it could become quite expensive.”
Although most landlords will allow renters to sublet to the new owner, this might prove to be problematic and is best avoided. “If the new owner does not pay the rent, the old owner will be liable,” Hayes said. “You never want to put yourself in a position to where you are retired and something comes back to bite you.”
The Latest
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Karina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
Concerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
May’s birthstone is beloved for its rich green hue and its versatility.
Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
The brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.
Tim Schlick has been promoted from his previous position as COO.
It’s the second year for the event, slated to take place in October in Toronto.
Supplier Spotlight Sponsored by GIA
Sales will be paused while the relocation takes place over the next few months.
“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
The retailer is moving to a newly designed space in the same shopping center.
Gifts that are unique and thoughtful are top of mind this year, according to the annual survey.
The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
The two organizations will host a joint event, “Converge,” in September 2025.
Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.