ULTRA Diamonds
| Company type | Private |
|---|---|
| Industry | Retail (Jewelry) |
| Founded | August 1, 1991 in Gurnee, Illinois, United States |
| Founder | Daniel H. Marks |
| Defunct | November 2, 2012 |
| Fate | Acquired by Signet Jewelers |
| Headquarters | Chicago , United States |
Area served | United States |
Key people | Daniel H. Marks (Founder, President and CEO) |
| Products | Diamonds, gemstones, gold jewelry |
| Parent | Signet Jewelers (from 2012) |
ULTRA Diamonds operated as a retailer specializing in fine jewelry within factory outlet and value centers throughout the United States. The company was involved in the production and direct importation of diamonds, gemstones, and gold jewelry pieces. At its height, ULTRA managed more than 100 outlet locations along with 38 licensed jewelry departments. The business faced bankruptcy proceedings twice, first during 2001–2002 and again after the financial downturn in 2008. On November 2, 2012, Signet Jewelers completed the acquisition of ULTRA.
History
The inaugural ULTRA store launched in August 1991 in Gurnee, Illinois. Daniel H. Marks, who founded the company and served as president and CEO, is a jeweler of the third generation, having previously led Marks Brothers Jewelers, which owned the Whitehall and Lundstrom chains. ULTRA’s retail approach emphasized "off-market" pricing strategies, maintaining profit margins below typical industry levels.
Between 1991 and 2000, ULTRA expanded its market presence; however, following a sales decline of 10.8% in 2008—including an 18.9% drop during the vital holiday period—the company filed for Chapter 11 bankruptcy again in 2009.
After emerging from bankruptcy that year, ULTRA bolstered its financial position by securing a $30 million credit facility from Bank of America. Crystal Financial converted half of the company's debt into equity, acquiring a 56% ownership share; unsecured creditors were granted an 18% stake along with a $3 million promissory note; meanwhile, management accepted salary reductions and obtained a 26% equity portion. The restructuring included shuttering 30 underperforming stores while continuing operations at 178 sites.
On October 24, 2012, Signet Jewelers reached an agreement to purchase ULTRA Stores from Crystal Financial and other shareholders for roughly $57 million in cash without assuming any debt. The transaction finalized on November 2, 2012, after which most ULTRA locations were rebranded as Kay Jewelers Outlets.