Alpha Omega Jewelers is reportedly to be in financial crisis with a case of bankruptcy, loss of inventory and auction sales of its assets, looming over it. The company located in the United States, is owned by Raman Handa and family, who left the U.S. during Alpha’s financial troubles beginning from December onwards. Handa who has been ill and is in India, reportedly gave permission via e-mail for Alpha to file for bankruptcy.
Alpha also faced a loss of inventory worth $6.6 million in December, and is not sure whether this has been caused due to theft or book keeping errors. The company has filed a case in the Suffolk Superior Court, according to Boston Globe. The loss came to the limelight on the occasion when LaSalle Business Credit, a retail lending arm of Bank of America Corp. and the store's chief creditor, filed the complaint. The litigation however, was on hold after the case of bankruptcy was filed.
The judge’s ruling on January 4 permits Alpha Omega to continue its trade even as the bankruptcy case moves ahead. Alpha has accordingly set to auction its assets around January 24. Presently, the company is being managed by consultants who joined in earlier this year, —Consensus Advisors LLC's Michael O'Hara and Altman and Co. LLC's Gordon Lewis III. Also, Alpha is operating its seven Boston-area stores.