Fortunoff has laid off most of its staff at its headquarters in Uniondale, Long Island. That paves the way for the liquidation of the jewelry and housewares chain.
Some 300 workers, including the marketing, merchandising and purchasing areas, among others, were given pink slips. Customer service, IT and the Web site staff are still on board. Fortunoff employs 377 people at its headquarters and 1,748 in total.
Staff at Fortunoff stores remains intact, but it's a matter of time before they leave as stores get liquidated.
A hearing is set for Feb. 24 to approve a winning bid. So far only liquidators have shown interest. Bidding is set for the day before, at the office of Sidley Austin, the law firm for Fortunoff. Friday was the last day for many of the workers.
Fortunoff, owned by NRDC Equity Partners, declared Chapter 11 bankruptcy for the second time in a year on Feb. 5. Fortunoff went into bankruptcy for the first time in early 2008. The business has been hit particularly hard by the economic downturn but had been struggling for years before due to antiquated merchandising and systems.
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"It's devastating, because it was such a family business," said Arlene Putterman, Fortunoff spokeswoman and a 22-year veteran of the company. "I have always believed I was part of the family, so I am sad to see so many people here saying goodbye. Some were here for 40 years.... We are walking out of here without anything except a lot of good memories."
Fortunoff was in business for 87 years and it's a shame to see it close.
