The wife and father of David Nygaard, the jeweler who recently closed seven Hampton Roads stores amid credit problems, have taken over the lease at one location and opened a new jewelry shop there.
Richard Nygaard and Jan Nygaard operate Nygaard Fine Jewelers at the Crossways Shopping Center in the Greenbrier area of Chesapeake, David Nygaard said. He is seeing customers there and focusing on custom orders, he said, but the business bought all new inventory and has no financial connection to the retail chain that lost its line of credit with Wachovia Bank this spring.
Wachovia, which called all loans to David Nygaard Fine Jewelers and forced its liquidation in June, has moved to foreclose on Nygaard's home in Virginia Beach, Nygaard said. He put up the house, which he bought on Cutty Sark Road in the Alanton area in 1993, as collateral for the loans.
BB&T, another lender to David Nygaard Fine Jewelers, also has filed liens against the business, he said.
Nygaard said he plans to file Chapter 7 petitions in U.S. Bankruptcy Court for both his business and his personal finances. Under Chapter 7, a debtor liquidates all assets. Nygaard said he stayed current on his home mortgage payments but now expects to lose the home where he lives with his wife and six children. The family has a second home in North Carolina, but he also used that property to secure his business debt, he said. In 1998, Nygaard launched his business when he bought his mother's jewelry store in Virginia Beach. He expanded quickly in the past four years, opening his seventh store in November in downtown Norfolk.
The new Nygaard Fine Jewelers is slowly building business and employs a few of his former employees, he said. Nygaard said he hopes to go back to school at Old Dominion University in the fall to get a doctoral degree in business.
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com
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What About?
The former employees, from HIS old business, that missed out on paychecks? Yes, things do smell fishy here for sure..
Dave Will Be Back!
I'm stunned he used both homes as collateral versus just putting them and the rest of the assets in his wifes' name, and the business in his name. Bad part is Alanton is a lot more expensive now to buy in than in 1993. We'll see who shows up at the Alanton Sheriff's sale for a buyback. Stay tuned.
AS said previously ..smells fishy
I suppose once he gets through the Bankruptcy procedures and then owes no one money, he will open up his accounts that are hidden and go to school plus support his family. he should worry about getting a new home - ooohh - his wife will do that now that she has a business. Strange goings on here. Look how fast everything is moving.
Avoiding recessions by means of school
I dunno, isn't it somewhat normal to avoid recessions by going back to school? Just because he may loose a home he had up as collateral for a biz loan doesn't mean he's broke, it might just be a business move. As far as degree or no degree, he should probably read good blogs more -- he would have known what is going on. Not that people like Greenspan (while in office, now he won't shut up) seemed to know what was going on. Nor did big wall street banks. So when's the run on Wachovia going to happen!?
Somewhat catty, but....
...is going back to school for a DOCTORAL degree really appropriate in these circumstances? It would seem to be a better decision to do something to put a roof over the heads of those six kids you brought into this world....
Business Doctorial...
I don't think so......
Bad smell
Something smells funny here.
Talk about free advertising!
Wow, lots of free advertising. Things I bet you didn't know. It's pretty difficult for a small business to get a business loan, even when they do well, without putting up personal assets. However, over the past few years, lenders have been more than happy to give people loans at 105% (combined loan to value) on homes. Can you imagine if all of the mal-investment in real estate went into business creation, or technology, or energy solutions? Granted, business like Nygards owes it's success to the real estate boom, which made people feel wealthy. Some extracted their spending money from their homes (slime call this "freeing equity"). Others made money on the mania and blew it promptly. A better business idea for now might be a pawn shop that buys stuff in the USA, then sells it abroad in other countries.