How the closing of a jewelry chain turned to gold.
A multi-store sale results in more than $100 million in sales… while reducing expenses by more than 15%.
International Gold & Diamond [Columbus, OH]
Silverman Consultants was solicited by the secured creditor, Huntington National Bank, to bid on liquidating the assets of International Diamond and Gold (IDG) in Columbus, Ohio. The bank had foreclosed on the jeweler, placing the business into a state run receivership, and chose Silverman to liquidate the chain of eight stores. It was decided that the four stores located in Ohio, which were placed into receivership, would be liquidated under a store closing theme. Further, the four stores in Washington, which were not covered under the receivership, would be liquidated under a promotional theme. The bank originally projected the liquidation value of the inventory at approximately $5.5 million.
Silverman proceeded to place eight supervisors into the IDG locations to oversee the liquidation, and systems were put in place to ensure the accurate reporting of the liquidation. A detailed marketing plan was also designed to maximize recovery during the sales event. The result was that Silverman generated over $8 million in cash during the sales event, exceeding the bank’s initial projections by over 45%. The sale itself generated over $17 million in sales volume, exceeding the jeweler’s annual volume by over 30%.