Hallstead - Antoine Ngoupou MBA 545 Cases in Financial...

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Antoine Ngoupou MBA 545 Cases in Financial Management Pr. Robert Nickey Re: Hallstead Jewelers Hallstead Jewelers is a family business which was established 83 years ago. After the death of their father in 2002, Gretchen Reeves and Michaela Hurd took over the management of the company they had just inherited from their father. At the time of their father’s death in 2002 up until 2004, the store was located on Lake Avenue and Second Avenue, in the tri-state region. When the sisters assumed ownership, the company financial statement did not look very promising, sales and profits were decreasing, competition was becoming fierce with the arrival of Tiffany & company on the block and the emergence of Blue Nile on the internet. The factors compelled the sisters who needed to take immediate action in order to save the business. Gretchen and Michaela decided to sign a five year lease on a space vacated by a large toy seller on Washington Street and Second Avenue. The new location would provide a new leverage to sisters by adding 50% more space and selling staff. Despite acquiring the new location, and after performing expensive renovations, the sisters were confronted to the harsh reality of falling profits and declining sales at the end of fiscal year in 2007. The income statement revealed a decrease in the number of sales tickets (number of customer
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This note was uploaded on 04/29/2010 for the course MBA 545 taught by Professor Debraco during the Spring '10 term at American University in Bulgaria.

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Hallstead - Antoine Ngoupou MBA 545 Cases in Financial...

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