Finlay Enterprises files for Ch. 11 protection

NEW YORK (AP) — Jewelry retailer Finlay Enterprises Inc. has filed for Chapter 11 bankruptcy protection and plans to pursue an auction of its business and assets.

The company said late Wednesday that it also filed motions with the bankruptcy court to allow it to run its operations without interruption while the bankruptcy and auction process run their course.

"We have arrived at this decision after careful analysis and believe it is necessary given the continued challenging economic environment that has resulted in our current business condition," Chairman and CEO Arthur E. Reiner said in a statement.

Finlay had 182 locations at the end of the second quarter, including 67 Bailey Banks&Biddle stores, 34 Carlyle and four Congress specialty jewelry stores. It also had 77 licensed departments with Bon Ton.