Engagement ring lost when repair store goes bankrupt

While everyone dreads losing an irreplaceable keepsake, Kim Zelden is trying all she can to make the loss of her engagement ring no more than a temporary setback.

Just before Christmas, Zelden took the $4,000 ring to be repaired at Christian Bernard Jewelers at Woodfield Shopping Center near her Schaumburg home. When her husband Mark went to pick the ring up a few days after the holiday, the couple was shocked to find the store had declared bankruptcy and closed its doors.

The most haunting aspect of the loss was that a store rep had called on Christmas Eve to tell her the ring was ready.

"We didn't go out to get it because we had company over," Zelden said.

The information desk at Woodfield wasn't able to shed much light on what happened or where the Zeldens could turn.

So they started calling every number they could find at Christian Bernard's corporate headquarters in New Jersey, and all 15 other stores in the country. No one answered, and no one from the company has called back.

The Zeldens also contacted the state attorney general's office, and Woodfield's management office was later able to provide the name and number of the New Jersey-based attorney appointed trustee of the jewelry chain's holdings. But that attorney hasn't gotten in touch with them yet, either.

Whether Zelden will ever see her engagement ring again is unclear, but local bankruptcy lawyers believe the couple is on the right track, though it may take some time.

Dennise McCann, a bankruptcy attorney for Anderson & Assocs. in Schaumburg, said the appointed trustee in a Chapter 7 bankruptcy is completely unconnected to the debtor and is in charge of the claims against the company.

Knowing the name and contact information for the trustee is one big step already out of the way, she said.

Legally, the trustee in a Chapter 7 bankruptcy must return all property to its rightful owners, McCann said. Otherwise, the trustee would be taking property that isn't his or hers.

The Christian Bernard trustee, Charles Forman, was not in his New Jersey office or available for comment Friday. No one from the jewelry company, nor its bankruptcy attorney, could be reached Friday.

Wheeling-based bankruptcy attorney David Siegel said Zelden might have better luck than if she'd just purchased the ring but hadn't picked it up before the chain closed doors.

As Zelden's ring was there to be repaired, it was never the property of the store and can't be considered an asset to be liquidated, he said.

Siegel compared Zelden's situation to leaving a car in a parking garage. Even if the garage closes, the car doesn't become the property of the garage owner, he said.

Though the Illinois Attorney General's office doesn't get directly involved in bankruptcy cases, it does serve a consumer advocacy role and can be a helpful resource for recovering seized property in a bankruptcy, spokeswoman Natalie Bauer said.

Zelden was advised to file a complaint with the attorney general's office. Bauer said the office hadn't yet received any complaints regarding Christian Bernard Jewelers.

Apart from Woodfield, the company's only other Illinois store was in Chicago's Water Tower Place.

With her 10th anniversary approaching, Zelden is hoping for a relatively prompt response from Forman.

"My ring, it doesn't matter what it's worth," she said. "It's of sentimental value to us."

• Staff writer Kim Mikus contributed to this report.

Where to turn

If a retailer files for bankruptcy and you're stuck with broken merchandise to return or have another problem, there are avenues to try. Here are a few ideas:

• Report the incident to the Better Business Bureau, a private, nonprofit organization that seeks to promote an ethical marketplace. Their Web site is bbb.org.

• Contact the Illinois attorney general's consumer fraud division by calling (800) 386-5436 or visiting the Web site at illinoisattorneygeneral.gov.

• Find the name and contact info for the trustee in a bankruptcy case. That's important in recovering property that is yours. If no other source can help, try the local courthouse covering the jurisdiction of the bankruptcy.

• If an item was purchased on your credit card, call the credit card company to dispute the charge.

• Before making purchases, especially large ones, check out possible complaints filed against the retailer with the Better Business Bureau. The number of complaints usually spikes when a company is headed toward bankruptcy, according to the agency.

• If all else fails, go to small claims court. Consumers can file with the county clerk's office.

Sources: Better Business Bureau, Illinois Attorney General's office.