Mayor’s Jewelers Jumps on the Block

Mayor’s Jewelers Inc., a small-cap retailer of high-end jewelry and watches, announced it is up for sale and has hired TM Capital Corp. to assist with the auction. CEO Isaac Arguetty said in an April 23 press release that his company is “poised for greatness” but added that this is an appropriate time to explore options. As for its “greatness,” Mayor’s revenue for its fourth quarter ended Feb. 3 increased to $71.5 million from $65.8 million and earnings shot up to $20.3 million from a slight $2.5 million in the year-prior period. The Street approved of the company’s news. Mayor’s stock rose 3.9% to $3.99 on the day of the announcement. On April 30, its stock closed at $3.85. Peter McMullin, an analyst at Ryan Beck & Co., said that possible buyers include other publicly traded jewelry store chains, like Zale Corp., which could want to merge its upscale jewelry division, Bailey Banks & Biddle, with Mayor’s. LVMH Moet Hennessy Louis Vuitton also has been rumored by some as a potential buyer, but McMullin said that the fit would not be a good one. He declined to elaborate.