Shane Company filed Chapter 11 in 2009 — and repaid every dollar

Shane Company was founded in 1971 by Tom Shane in Denver, Colorado, growing into the largest privately owned jeweler in the United States with 22 retail stores and a strong online presence. The company was known for its direct-import model — cutting out middlemen to offer lower prices — and for founder Tom Shane's ubiquitous radio commercials with the tagline 'Now you have a friend in the jewelry business.' Tom's family had been in the jewelry trade since 1929.

The 2008 financial crisis and a disastrous holiday season hit Shane Company hard. Like many jewelers, the company carried significant inventory debt and the sudden drop in consumer spending left it unable to meet its obligations. On January 12, 2009, Shane Company filed for Chapter 11 bankruptcy protection in Phoenix, Arizona. Three underperforming stores — in Orlando, Florida; Morrow, Georgia; and Tukwila, Washington — were closed.

What happened next was unusual. Over the following 18 months, Shane Company worked with creditors to restructure its debt while continuing operations at its remaining 19 stores. On August 11, 2010, the company filed a Plan of Reorganization to repay 100% of all debts — a rare outcome in bankruptcy. The bankruptcy judge called it 'the ideal Chapter 11.' The company emerged from bankruptcy protection on December 21, 2010, intact and still owned by the Shane family. The brand, the stores, and the radio ads that made Tom Shane one of the most recognized voices in American advertising all survived.