Samuels Jewelers Inc., a Texas-based chain that was controlled by Mehul Chinubhai Choksi, the uncle of fugitive jewelry designer Nirav Modi, has filed for chapter 11 protection, the Wall Street Journal reported. Choksi and Modi are both wanted by Indian authorities, who are investigating an alleged multibillion-dollar bank fraud. Modi’s U.S. jewelry businesses have been in bankruptcy since February and largely have been sold off. Samuels, which operates more than 120 jewelry stores in the U.S., has called in liquidators to start selling off inventory to pay off debts of more than $100 million, according to papers filed yesterday in the U.S. Bankruptcy Court in Wilmington, Del. Court papers also say that there are plans to close more than 100 stores. Samuels owes $84 million to banks led by Wells Fargo Bank N.A., $10 million to GB Credit Partners LLC, and has debt to suppliers of goods and services of more than $28 million, according to court papers.
