Shopping blues

Filed for Chapter 11 protection on June 23, 2008

Malls across the country lost a little bit of their sparkle when Whitehall Jewelers, a Chicago-based fine jewelry retailer, started liquidating $750 million worth of assets in its 373 stores. As more consumers watch their credit, the jewelry industry, worth over $40 billion, will continue to squeeze out retailers--the top chains comprise only a fraction of the market, which is dominated by Wal-Mart. Whitehall, which saw $74 million in losses in fiscal year 2007, has also struggled with litigation and cycled through CEO's over the last few years. Most of the company's baubles will be sold off, but Michael Hill International, a New Zealand jeweler, purchased 17 stores in May.

NEXT: Linens `n Things