Skip navigation

Warren Buffett Watch

RSS FEED

» Help

Current DateTime: 08:00:44 28 Nov 2009
LinksList Documentid: 30078629
powered by digg
Warren Buffett's Omaha Jewelry Retailer Cuts Jobs As Recession Slows Sales
Published: Wednesday, 10 Jun 2009 | 11:58 AM ET
Text Size
By: Alex Crippen
Executive Producer

Borsheims Cocktail Party Tent
CNBC.com
Borsheim's hosts a party for Berkshire Hathaway shareholders at their annual meeting.  This photo shows a tent set up in the parking lot for the 2008 gathering.

Warren Buffett's big jewelry retailer in Omaha is feeling the recession's sting.

Demonstrating that even 'luxury' stores backed by billionaires aren't immune to the economic downturn, Borsheim's has laid off 13 employees from "across the company," a reduction of 4.6 percent.  It now has 267 workers.

The company is owned by Buffett's Berkshire Hathaway.  Berkshire's home page prominently features a link to Borsheim's along with a quote from Warren E. Buffett: "If you don't know jewelry, know the jeweler."  

Borsheim's Watches & Accessories page features a picture of Buffett showing his "Watch Choice": a Raymond Weil NE Husker Logo Watch, available for $995.

Borsheim's single 62,500 square foot store anchors the upscale Regency Court mall in Omaha.  It plays a starring role at Berkshire's annual shareholders meeting, hosting an enormous party each year and, of course, selling jewelry to attendees at a special discount.

Watch counter at Borsheim's Omaha retail store
Borsheims.com
Watch counter at Borsheim's Omaha retail store

Marketing Director Adrienne Fay tells me sales were good at last month's shareholders meeting, but not good enough to make up for a trend of falling sales that began last November.

Borsheim's has "already implemented many cost-cutting measures ... in an effort to preserve the jobs of our loyal associates."   Despite those efforts, "it has become necessary to lay off employees" for the first time in the store's 100-year-plus history.

In a statement, Borsheim President Susan Jacques says:

"The loss of our staff members is devastating.  This is the absolute last thing we wanted to do. While we are hopeful that we might see signs of an economic recovery in the fourth quarter of 2009, we had to make extremely difficult decisions out of a fiduciary responsibility to Berkshire Hathaway and its shareholders to continue to remain profitable despite these challenging times.”

Jacques goes on to say that Borsheim's will continue to be a strong business and Omaha landmark in spite of the "challenging conditions."

A web page on career opportunities at Borsheim's says the retailer's company mission is "exemplary customer service" and notes that "our family-friendly atmosphere is one in which our employees are the most valued gems in the company." 

As one comment on the web site of NBC affiliate WOWT-TV in Omaha puts it, "It's scary when a company like this lays people off... things must be really bad."

Current Berkshire stock prices:
Berkshire Portfolio

Class A: [US;BRK.A  Loading...      ()   ]

Class B: [US;BRK.B  Loading...      ()   ]

For more Buffett Watch updates follow alexcrippen on Twitter.

Questions?  Comments?  Email me at

© 2009 CNBC, Inc. All Rights Reserved
Add This share icon
Text Size
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:04:29 28 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:01:49 28 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:01:49 28 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:50 28 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters