Alex and Ani in trouble

[Rhody74]

From the Boston Globe: A few short years ago, jewelry maker Alex and Ani LLC was the public example of a happy Bank of America Corp. customer. Now, it’s suing the lender for more than $1 billion in damages and alleging discrimination.

The female-led company says the bank fraudulently declared it in default of a $50 million line of credit last year and is driving the jeweler toward bankruptcy. It’s a stark turnaround from a 2014 commercial that touted Bank of America’s help in making Alex and Ani a “global sensation.”

The Rhode Island-based jewelry maker, which markets bangles and charms at its own stores and some high-end U.S. retailers such as Bloomingdale’s and Nordstrom, said it got the credit line in 2016 to fund operations, according to a lawsuit filed Thursday in New York federal court. But in December 2018, the bank declared the company in default without warning, setting off a chain of events that Alex and Ani claims led to $1.1 billion in expenses, lost revenue and reduced market value.


I bet the court gets a new name this season.

[steviep123]

I bet the court gets a new name this season.

Wasn't there a BankRI logo over the Alex & Ani logo for some games last year?

[Rhody74]

Yes ... makes me wonder if it was related to the BofA action.

[TruePoint]

I assumed it was due to Alex & Ani being in trouble financially and not wanting or not being able to continue to spend the money. The BOA thing is a symptom of a larger problem for them, not the cause of it.

[RF1]

I am surprised it has lasted as long as it has. It rose to prominence on a fad that was always going to eventually run its course. Needed to really diversify in to other businesses.

[Taylor Swift]

https://www.providencejournal.com/news/ ... ath-spiral

Wonder if we're still going to have the Alex + Ani court come this fall? (Hope not...)


Their financial problems are probably due to the fact no one has worn their crap jewelry in 7 years.

[Taylor Swift]

I am surprised it has lasted as long as it has. It rose to prominence on a fad that was always going to eventually run its course. Needed to really diversify in to other businesses.

Me too! I posted the Projo article a few minutes ago, didn't notice this first thread from yesterday. Fad jewelry made from cheap material.

[Rhody74]

I am surprised it has lasted as long as it has. It rose to prominence on a fad that was always going to eventually run its course. Needed to really diversify in to other businesses.

Me too! I posted the Projo article a few minutes ago, didn't notice this first thread from yesterday. Fad jewelry made from cheap material.

But it had energy!!!!

[RF1]

I am surprised it has lasted as long as it has. It rose to prominence on a fad that was always going to eventually run its course. Needed to really diversify in to other businesses.

Me too! I posted the Projo article a few minutes ago, didn't notice this first thread from yesterday. Fad jewelry made from cheap material.

But it had energy!!!!

Seems to have now however lost all its energy and aura. It was crystal clear that it just wasn't in the cards for long term sustainability. Apparently no one there had the stones to channel the company toward other ventures.

[Running Ram]

I am surprised it has lasted as long as it has. It rose to prominence on a fad that was always going to eventually run its course. Needed to really diversify in to other businesses.

ditto

Beanie Babies?

[Taylor Swift]

I am surprised it has lasted as long as it has. It rose to prominence on a fad that was always going to eventually run its course. Needed to really diversify in to other businesses.

ditto

Beanie Babies?

She bought Sakonnet Vineyards and Belcourt castle as her deversification.

What's interesting is I just googled her, and turns out she went to Prout. I had NO idea she went there. I graduated from Prout in 2002 and never once is she mentioned in any alumni marketing or events. Also another tidbit, turns out she didn't even graduate from URI, she transferred to an art school in LA where she actually got her degree from. See when people say "attended" doesn't mean they graduated.

[Rhody83]

The Alex and Ani sponsorship was on an annual renewal with a end date in the middle of the season. They didn’t renew and Bank of RI signed up for the floor sponsorship.

[79RhodyFan]

Carolyn and Giovanni Feroce the then CEO of A&A were commencement speakers at 2013 URI graduation.

[Taylor Swift]

Carolyn and Giovanni Feroce the then CEO of A&A were commencement speakers at 2013 URI graduation.

He's a real winner right there.... evading his taxes down in PR.

[RhodyKyle]

It sounds to me like A&A may not have known about, or understood, all of the covenants they agreed to in order for BoA to extend them that revolving facility. They then violated one or more of them and it came apparent to BoA when they review the A&A financial statements for the most recent fiscal year. Once a covenant is broken, the bank has every right to cut-off the LOC and remove their ability to draw down on it. Banking in this area is highly competitive - if they are in trouble, BoA would work with them to restructure the debt. The fact that they lost the LOC with BoA and no other bank has granted them a similar facility tells me that they are actually in trouble. If BoA really did pull it for no reason and A&A is financially sound, they could walk into another bank that day and walk out with another LOC to fund their business.

[TruePoint]

It sounds to me like A&A may not have known about, or understood, all of the covenants they agreed to in order for BoA to extend them that revolving facility. They then violated one or more of them and it came apparent to BoA when they review the A&A financial statements for the most recent fiscal year. Once a covenant is broken, the bank has every right to cut-off the LOC and remove their ability to draw down on it. Banking in this area is highly competitive - if they are in trouble, BoA would work with them to restructure the debt. The fact that they lost the LOC with BoA and no other bank has granted them a similar facility tells me that they are actually in trouble. If BoA really did pull it for no reason and A&A is financially sound, they could walk into another bank that day and walk out with another LOC to fund their business.

A&A was a big boy company, not a helpless mom & pop shop. They had the resources to hire a serious legal team and to have a serious compliance outfit within their finance and accounting departments. There is no way a company in the situation they were in violated a covenant of the agreement by honest mistake. The most charitable possible interpretation is that they were reckless and willfully negligent, but far more likely they were trying to cut corners because their business was imploding.

[Rhody74]

Exactly what you guys said. Most LOCs must be reduced to a zero balance for 30 days. If A&A failed to do this that might have triggered the cancellation. Banks WANT their customers to succeed. The death spiral is of the company’s own making.

[RhodyKyle]

It sounds to me like A&A may not have known about, or understood, all of the covenants they agreed to in order for BoA to extend them that revolving facility. They then violated one or more of them and it came apparent to BoA when they review the A&A financial statements for the most recent fiscal year. Once a covenant is broken, the bank has every right to cut-off the LOC and remove their ability to draw down on it. Banking in this area is highly competitive - if they are in trouble, BoA would work with them to restructure the debt. The fact that they lost the LOC with BoA and no other bank has granted them a similar facility tells me that they are actually in trouble. If BoA really did pull it for no reason and A&A is financially sound, they could walk into another bank that day and walk out with another LOC to fund their business.

A&A was a big boy company, not a helpless mom & pop shop. They had the resources to hire a serious legal team and to have a serious compliance outfit within their finance and accounting departments. There is no way a company in the situation they were in violated a covenant of the agreement by honest mistake. The most charitable possible interpretation is that they were reckless and willfully negligent, but far more likely they were trying to cut corners because their business was imploding.

Completely agree - just didn't want to seem like I'm piling on. In these types of instances, the company knew exactly what they were doing.

[Taylor Swift]

https://www.providencejournal.com/news/ ... ating-rink

Hoping that the RC court is next.

[Rhody83]

https://www.providencejournal.com/news/ ... ating-rink

Hoping that the RC court is next.

It was covered up last year.

[Rhody74]

https://www.providencejournal.com/news/ ... ating-rink

Hoping that the RC court is next.

It was covered up last year.

Only for a few games.

[Taylor Swift]

https://www.providencejournal.com/news/ ... ating-rink

Hoping that the RC court is next.

It was covered up last year.

Only for a few games.

It was gone and then came back for the remainder of the season.

[RhodyFanNotAlum]

Another big sponsor has trouble of a different sort: https://www.golocalprov.com/news/RI-Hea ... -Bar-Grill

(Sorry, didn't want to start a new thread just for this -- but figured it was worth noting since many of us are sitting on unused gift cards.)

[theblueram]

Another big sponsor has trouble of a different sort: https://www.golocalprov.com/news/RI-Hea ... -Bar-Grill

(Sorry, didn't want to start a new thread just for this -- but figured it was worth noting since many of us are sitting on unused gift cards.)

Gotta say not surprised. That place is a disaster. I ordered clams casino from there once and there was not one clam in any shell. Just stuffing. Disgusting.

[RhodyKyle]

Could that be one of those strategic "hit pieces" they run when a company refuses to buy ad space?

[Rhody74]

Another big sponsor has trouble of a different sort: https://www.golocalprov.com/news/RI-Hea ... -Bar-Grill

(Sorry, didn't want to start a new thread just for this -- but figured it was worth noting since many of us are sitting on unused gift cards.)

Gotta say not surprised. That place is a disaster. I ordered clams casino from there once and there was not one clam in any shell. Just stuffing. Disgusting.

Dunno. We always liked the food there. Matunuck is better though.

[TruePoint]

Could that be one of those strategic "hit pieces" they run when a company refuses to buy ad space?

Would certainly fit the golocal model.

[Taylor Swift]

Could that be one of those strategic "hit pieces" they run when a company refuses to buy ad space?

Would certainly fit the golocal model.

I got severely sick from undercooked chicken from a place I won't name... the Health Department actually called me since they had my information (I used an online ordering app). It was horrendous.

http://ri.healthinspections.us/ri/

Pretty much any time the inspectors go in they're going to find something, but what Two Ten had was severe.

[RhodyKyle]

Could that be one of those strategic "hit pieces" they run when a company refuses to buy ad space?

Would certainly fit the golocal model.

I got severely sick from undercooked chicken from a place I won't name... the Health Department actually called me since they had my information (I used an online ordering app). It was horrendous.

http://ri.healthinspections.us/ri/

Pretty much any time the inspectors go in they're going to find something, but what Two Ten had was severe.

I'm not suggesting that GLP made anything up. Simply that they are the only ones reporting on this meaning they went digging for dirt and found some. They have a track record for why they go digging for dirt.

[Taylor Swift]

They’re notorious for that, Kyle! I think GLP stinks overall. They deleted a Tweet/Lamebook comment I made about URI. Nice free speech you got there.

[Rhody83]

GLP is tabloid news.

[NYGFan_Section208]

Could that be one of those strategic "hit pieces" they run when a company refuses to buy ad space?

Would certainly fit the golocal model.

I got severely sick from undercooked chicken from a place I won't name... the Health Department actually called me since they had my information (I used an online ordering app). It was horrendous.

http://ri.healthinspections.us/ri/

Pretty much any time the inspectors go in they're going to find something, but what Two Ten had was severe.

Yuck...as everyone who's been there knows...the worst part of food poisoning isn't when thoughts turn to you might die..it's when you realize you might not...

[Taylor Swift]

And then Two Ten also had this ... https://www.ricentral.com/narragansett_ ... 32e1a.html

[rhodyruckus]

A family member sells the $5 Paparazzi jewelry and looking at the two metals side by side I don't how the quality of A&A would be SIX times the value of the cheaper stuff.

However despite the profits, those legal bills must also be racking up. A&A seems to always have lawsuits going and the uber-expensive celebrity attorney Mark Geragos is their counsel.

[Taylor Swift]

A family member sells the $5 Paparazzi jewelry and looking at the two metals side by side I don't how the quality of A&A would be SIX times the value of the cheaper stuff.

However despite the profits, those legal bills must also be racking up. A&A seems to always have lawsuits going and the uber-expensive celebrity attorney Mark Geragos is their counsel.

Frivolous lawsuit time commence!

Looks like between Carolyn and Gio they don’t have much to hang on to.

[BleedBlue87]

Could that be one of those strategic "hit pieces" they run when a company refuses to buy ad space?

Would certainly fit the golocal model.

I had personal experiences with that!!

[PeteRI]

Maybe I'm in the minority, but I've been to 210 half a dozen times and thought it was OK. Haven't been in almost a year, though ...

Now A & A is another matter. That Feroce fella's a piece of work. Trying to resurrect a brand that's been dead for decades (Benrus) is bad enough. But bringing back these guys is even more egregious:

https://youtu.be/GLFiH8ZlNo4

[Taylor Swift]

Maybe I'm in the minority, but I've been to 210 half a dozen times and thought it was OK. Haven't been in almost a year, though ...

Now A & A is another matter. That Feroce fella's a piece of work. Trying to resurrect a brand that's been dead for decades (Benrus) is bad enough. But bringing back these guys is even more egregious:

https://youtu.be/GLFiH8ZlNo4

That's the thing, 210 is just OKAY. They're now thirsting all over Instagram with pics of their food and drink-- damage control in its finest.

I know someone who worked for him at Benrus, and he didn't even have money to pay his top staff (or any?)

[LoveThoseRams]

How much is an ad on the court anyway?

[Rhode_Island_Red]

How much is an ad on the court anyway?

How much ya got?

[LoveThoseRams]

How much is an ad on the court anyway?

How much ya got?

Not nearly enough

[Taylor Swift]

How much is an ad on the court anyway?

How much ya got?

Not nearly enough

I wonder if it’s going to be BankRI again. I’d say it’s probable. I’m sitting here laughing imagining a “Gansett Wraps Court”

[NYGFan_Section208]

How much ya got?

Not nearly enough

I wonder if it’s going to be BankRI again. I’d say it’s probable. I’m sitting here laughing imagining a “Gansett Wraps Court”

Ocean State Job Lot Court

[Rhody74]

Alex and Ani dropped their suit against BofA, btw. I wonder if they reached a settlement of sorts.

[RF1]

They saw the future. The prospect of winning the suit wasn't in the cards.

[Taylor Swift]

They saw the future. The prospect of winning the suit wasn't in the cards.

Agreed. The bit of publicity it got was probably all they wanted.

[Puck Frovidence]

Believe A&A attempted to branch out into restaurants/cafe type things. They bought out the space of a much better coffee shop in Wayland Square and opened a tacky new-age type coffee-chain clone called "Teas and Javas". Clearly designed to be a franchise and scalable, but that never happened and they still only have the one location.

[Taylor Swift]

Believe A&A attempted to branch out into restaurants/cafe type things. They bought out the space of a much better coffee shop in Wayland Square and opened a tacky new-age type coffee-chain clone called "Teas and Javas". Clearly designed to be a franchise and scalable, but that never happened and they still only have the one location.

Ahh I forgot about the crappy coffee shop.

[thatRamBand]

I think the crappy coffee shop closed too. Still own the Bar and Board on Thames St in Newport.

[Rhody83]

Alex and Ani name still on the court.