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Financially troubled, Speidel seeks to sell assets

By Michelle Graff
July 01, 2009

Providence, R.I.--Speidel LLC is the latest jewelry and watch manufacturer to fall victim to the economic crisis, with the 105-year-old company placed into receivership by a Rhode Island court on Friday.

According to court documents filed in Rhode Island Superior Court in Providence, R.I., Speidel Chairman and Chief Executive Officer Frederick N. Levinger filed a petition for the appointment of a temporary receiver--a legal action in which the receiver takes over the company to handle its assets and run its financial affairs--for Speidel on Friday, stating that the company is "insolvent and unable to meet its obligations as they become due" and is "far in arrears of payment of its obligations and there is a danger of dissipation and depreciation of the assets."

The court approved the petition the same day.

Also filed and approved on Friday was another petition from Levinger for temporary receivership for his two-store retail chain, Providence Watch Hospital LLC, a fine-jewelry retailer and repair shop with stores in Cranston, R.I. and Wakefield, R.I.

According to the petition, Providence Watch Hospital suffered from the same financial problems that brought down Speidel.

Court documents show that Allan M. Shine, an attorney with Winograd, Shine and Zacks PC who also served as receiver through the shutdown of another Rhode Island jewelry manufacturer, The Colibri Group, was appointed temporary receiver in both cases.

A hearing to appoint a permanent receiver is scheduled for July 16.

Shine said the plan is to liquidate both businesses and sell all the assets within 45-90 days, though no decision has been made as to how the sale will be conducted.

"We haven't determined the exact process by which we will sell the assets," Shine said.

In the meantime, all 47 employees have been let go, he said.

Founded in 1904 by Frederick Speidel, the Cranston, R.I.-based company manufacturers, markets and distributes watches, watch bands and pearl jewelry.

Levinger, who previously had served as CEO of The Colibri Group, purchased Speidel in 2007.
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