| Posted in | Posted on
Mar. 28--The high-end cigarette lighters, Seth Thomas clocks, Movado watches and other popular accessory brands that were long under the umbrella of the East Providence-based Colibri Group are now scattered across the country after last week's auction of many assets of the failed company.
The invitation-only auction was part of the liquidation of the 81-year-old company, which claims to have introduced the world's first automated cigarette lighter and which abruptly closed its doors in January.
The state Superior Court is overseeing the sale of the company's assets and, according to records on file with court-appointed receiver Allan M. Shine, the two big buyers at the March 19 auction were Bidz.com, of California, and Alliance Time, of New York.
Bidz.com -- a Web-based company that auctions fine jewelry and upscale accessories -- spent about $5.9 million for Colibri's jewelry lines, which include Krementz, Daring Diamonds and Dolan Bullock. A Bidz.com spokesman yesterday said that the jewelry will be sold on the Internet and no decision has been made as to whether the patents and molds will be used for future manufacturing.
Alliance Time, a major distributor of watches and accessories, paid about $2.3 million for Colibri's signature line of cigarette lighters plus clocks under the Seth Thomas and Linden Clocks names.
Jomashop coupon code
Skinit coupon code
Dermstore coupon code
Zagg coupon code
Mymms coupon code
Supermediastore coupon code
In a statement, Alliance Time said it will market the products to large and mid-size retailers. "Colibri, Seth Thomas and Linden are well-known brands with a history of quality and consumer appeal," Eli Katz, president of Alliance Time's retail division, said. He noted that Seth Thomas is the oldest clock maker in the country and the manufacturer of the giant clock in New York's Grand Central Station.
Alliance's interest in Colibri might also be a hopeful signal to some of the company's 280 former employees -- many of whom protested Colibri's abrupt closure and showed their displeasure by trying to block the auction.
Alliance is asking former Colibri employees to send information on their work experience to its New York office and Katz said he spent Thursday and Friday in Providence talking to former employees.
"We would be remiss if we didn't explore tapping into the people and resources that previously served Colibri, Seth Thomas and Linden well," Katz said in his statement, adding in an interview that he has been "very impressed with the dedication of the Colibri employees."
Some job offers may be made, he said, but it is too soon to say how many Colibri employees might find work with Alliance.
Katz said there is also a possibility that Alliance is interested in Colibri's manufacturing site on Niantic Avenue in Providence and slated for auction in early April.
According to court records, Colibri's assets have to be sold to pay off debts that include $14 million each to HSBC Bank and Sovereign Bank.
Other successful bidders at the auction were from Texas, Long Island and Rhode Island. Cranston-based JJI International Inc, for example, purchased all Colibri products bearing the Movado name.
The Colibri assets varied from surplus inventory of brand-name products, to intellectual property and naming rights, plus some patented dies and molds.
The auction prompted a court challenge from one of the bidders, the Richline Group Inc., a jewelry manufacturer and Berkshire Hathaway subsidiary with operations in Florida, California, New York and Rhode Island.
According to Providence lawyer Wayne M. Kezirian, local legal counsel for Richline, the company was the high bidder on one of Colibri's jewelry lines until it was decided at the auction to consolidate all the different lines for one aggregate bid. Kezirian said that Bidz.com, which had bid on several jewelry lines other than the Princess Pride brand that Richline was interested in, won the aggregate bid.
Richline appealed the move in court and Kezirian said that he argued that the court should take into consideration that Colibri was a Rhode Island company and whether or not the bidders had any holdings in this state. He acknowledged that there was no case law to support the contention, but said it was a pertinent argument in these tough economic times.
If Richline had acquired the jewelry line it was bidding on, it might have meant 50 jobs for either new employees, or possibly Colibri employees, Kezirian said.
After hearing arguments Monday and Tuesday, the Superior Court rejected Richline's objection and Kezirian's argument, he said.
The sale of Colibri's manufacturing equipment is scheduled for April 16 at 10:30 a.m. at the Colibri property at 100 Niantic Ave. in Providence.
