“The season of love would not be complete without teddy bear hugs,” said Maxine Clark, founder and chief executive bear. “With endless options for personalization, and a large selection of $10 and $12 animals Guests can make gifts from the heart at the perfect price.”

NEW for Valentine’s Day this year is Beary Limited(R) edition Hugs Fur You Monkey for only $15. With long arms to hug your sweetheart and adorable pink heart fur, this new friend is sure to make you a hero this holiday!

It’s the pawfect gift for kids too – especially because Hugs Fur You Monkey, comes with a BONUS emoticon, along with all the other virtual gifts that come with bringing this friend to life online for FREE at buildabearville.com(R) – the Build-A-Bear Workshop virtual world stuffed with fun. And moms will love that Stuff Fur Stuff(R) club members will receive double points when they purchase a Hugs Fur You Monkey! It’s the gift that keeps on giving.

Build-A-Bear Workshop(R) is THE place to find personalized gifts at pawsome prices. Guests can say “money clips I love you” with Hugs & Kisses Lil’ Butter Cream Cub. This cute friend sports a red bow tie and offers a plush box of no calorie chocolates, rose bouquet, and plush heart picture frame all for just $17. Send a little love to your sweetheart with the Love Bug Brown Sugar Puppy for only $24. Another loveable option is the Beary Romantic Lil’ Honey Cub, wearing a layered red vest, black pants, scarf and matching cap, this romantic furry friend will steal your Valentine’s heart and is priced at $22.

Another perfect Valentine’s Day present is a gift that gives twice. When Guests make the NEW Jack Russell Terrier, or any of our full-sized Bearemy’s Kennel Pals(R) friends, $1 will be donated to support local animal shelters and stray pet rescue and rehabilitation organizations. In 2008, the Build-A-Bear Workshop Bear Hugs Foundation granted over $500,000 to domestic pet programs.

Build-A-Bear Workshop has always had a strong commitment to leave a pawsitive mark on the world. Since its inception in 1997, the Company has donated over $20 million to support causes related to children, animals and the environment, sharing the hug of a teddy bear wherever needed in local communities and abroad and recognizing kids doing great things.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc., is the only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience. The company currently operates more than 400 Build-A-Bear Workshop stores worldwide, including company-owned stores in the U.S., Puerto Rico, Canada, the United Kingdom, Ireland and France, and franchise stores in Europe, Asia, Australia and Africa. Founded in St. Louis in 1997, Build-A-Bear Workshop is the leader in interactive retail. Brands include make-your-own Major League Baseball(R) mascot in-stadium locations, Build-A-Dino(R) stores and friends 2B made(R) doll locations. In December 2007, Build-A-Bear Workshop(R) extended its in-store interactive experience online with the launch of its virtual world pendants at www.buildabearville.com. Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $474 million in fiscal 2007. For more information, call 888.560.BEAR (2327) or visit the company’s award-winning Web sites at www.buildabear.com and www.friends2Bmade.com.

TRADEMARKS

We would like to thank you for your interest in covering our business. As you write your story, we would ask that you use our full Name: Build-A-Bear Workshop(R) and that when referencing the process of making stuffed animals you use the word “make” not “build.”

Build-A-Bear Workshop is our well-known trade name and our registered trademark of Build-A-Bear earrings Retail Management, Inc. Build-A-Bear Workshop(R) should only be used in capital letters to refer to our products and services and should not be used as a verb.

The Lighting of the Tree ceremony Monday is set to kick off the Mayor’s Christmas Toy Drive: Operation Santa Cop for this Christmas season.

A non-perishable food drive is held in conjunction with the annual toy drive for youth through age 18.

The tree lighting features free cookies, face painting and ornament making, as well as a visit from Santa and his wife. The children can expect goodie bags from Santa.

The Portales High School and Portales Junior High School choirs provide bangles live caroling as well.

“We would like the whole community to come out for it,” City Community Affairs Coordinator Nicole Wilkening said.

That night, she said, people can begin taking ornaments representing an anonymous child in need from the tree. They should return the gifts to City Hall by Dec. 4.

People can also drop off new, unwrapped gifts for any child or donate money.

The food drive is collecting canned goods and staples such as flour and sugar,rings said Police Deputy Chief Lonnie Berry. Last year, he said, officers delivering toys noticed some families also needed food.

For the first time this year, toy donors are entered in a drawing for a chance to have milk and cookies one-on-one with the Clauses.

“It’s just a Christmasy incentive to have people participate in the program,” Wilkening said.

The drawing is scheduled for the Dec. 1 Portales City Council meeting.

“The program’s really important because everyone pulls together to provide bracelets presents and food staples, things of that nature, to families that won’t have a traditional Christmas this year,” Wilkening said. “So it’s just a way for the community to support each other and those going through hard times, because everyone does. The spirit of it is to not get discouraged and that the community is a family.”

Portales police officers deliver the gifts within city limits, and Roosevelt County Sheriff’s deputies serve children in the county. Portales Deputy Chief Lonnie Berry said officers took toys to 702 children last year.

Berry said there’s no particular type of gift needed.

“We serve such a wide variety, anything provided for us, we’ll be able to make use of it,” he said.

Berry said the drives are a great opportunity to give back to the community.

“We have great interactions with the kids and the families we get to go back to,” he added.

Fast Facts

What: Lighting of the Tree for the Mayor’s Toy Drive: Operation Santa Cop cufflinks

When: 6:30 p.m. Monday

Where: Portales City Hall

Toy drop locations:

–Portales City Hall, 100 W. First St.

–Portales Police Department, 1700 N. Boston Ave.

–Portales Senior Center, 421 N. Industrial money clips Dr.

–Hestand’s Floral and Gifts, 813 W. Second St.

–Roosevelt County Chamber of Commerce, 100 S. Ave. A

District Judge C. Douglas Loughner dismissed charges of operation of a corrupt organization, possession with intent to deliver and criminal conspiracy filed against David Ellison, 38, of 491 Independence Road, Hopewell Township, at the end of a day-long preliminary hearing in the county courthouse.

Those ordered to stand trial, and their charges:

l John Duzicky, 37, of 37 Timber Lane, Aleppo Township, operation of a corrupt organization, delivery of controlled substances, possession with intent to deliver, criminal attempt and criminal conspiracy.

l Thomas Palsa, 41, of 1102 Rhode Island Ave., Hopewell Township, bracelets operation of a corrupt organization, delivery of controlled substances, possession with intent to deliver and criminal conspiracy.

l Alan Stevens, 39, of 101A Center Grange Road, Center Township, possession with intent to deliver and criminal conspiracy.

Two other men waived their right to a preliminary hearing Wednesday:

l Frank Berardelli, 51, of 119 Porters Lane, Rochester Township, operation of cufflinks a corrupt organization, delivery of controlled substances and possession with intent to deliver.

l Kirk O’Neill, 37, of 1503 Grandview Way, Aleppo, operation of a corrupt organization, delivery of controlled substances, possession with intent to deliver, criminal attempt and criminal conspiracy.

State Attorney General Tom Corbett has said 12 men moved more than 400 pounds of marijuana, worth more than $2 million, from Tucson to Allegheny and Beaver counties each month between 2007 and August.

An investigation into the alleged ring was called “Operation Infamous Choppers,” after a motorcycle shop in Ohio Township owned by Duzicky. Prosecutors said Duzicky had been transporting marijuana to Beaver County as far back as 1990.

On Sept. 30, three other defendants waived their right to preliminary hearings on charges of participating in a corrupt organization, drug possession and criminal conspiracy. They were: James Gleason, 37, of Sewickley; William Loftus Jr., 31, of Aliquippa; and Jackie Carroll, 21, of Ambridge.

Another man, Richard Jula, 45, of Crescent Township, was ordered to stand trial on identical charges Sept. 30.

Trials for the defendants are scheduled for March.

With Wednesday’s hearings, only two of the 12 defendants have not yet had any court money clips appearances.

Brothers Larry and Richard Catlin are awaiting extradition from their home state of Arizona on drug and conspiracy charges. There was no word when they might be brought to Pennsylvania.

Miguel Bell, accused of leading an identify-theft gang, had affairs with “many” female tiffany jewellery tellers as part of a scam that typically used the information to generate bogus checks, U.S. Attorney Michael L. Levy said. A total of 24 people have been charged.

Bell, 34, who lives in the Ivy Hill section of the city, “apparently has certain wonderful charms,” Levy said. “What he did was get various employees at various banks to give him information.”

Bell’s indictment was unsealed this week and the charges disclosed at a news conference yesterday.

Dozens of accounts at eight banks were compromised. At Citizens Bank, one teller is accused of providing information on 37 customers, which allowed Bell and his accomplices to “acquire and attempt to acquire” $390,000, according to the indictment.

The banks have reimbursed customers, Levy said.

Bell’s defense attorney, Robert Gamburg, said, “I know that Mr. Bell maintains his innocence . . . bracelets but at this point in time, it’s premature for me to comment.”

Bell and four members of his alleged ring were taken into custody this week. The case dates to 2006, when police in Lower Providence and Deptford made arrests for what “at the time they thought were petty crimes” involving fraudulent checks, said Robert Slama, special agent in charge of the Philadelphia office of the Secret Service, which along with protecting government officials investigates financial crimes.

As the inquiry expanded, it turned out to be a “large criminal enterprise,” Slama said.

The U.S. Postal Inspection Service and Philadelphia police were also involved in the investigation. Identify-theft cases have prompted local law enforcement to establish a regional task force.

Levy said that although the case might cause “some people to panic because it does involve insiders . . . be aware people who do these schemes will get caught.”

The banks involved generally declined to discuss the case.

“We don’t comment on ongoing litigation,” said a Citizens Bank senior vice president, Sylvia Bronner.

Other banks targeted were PNC, M&T, Provident, SunTrust, Commerce, Sovereign, and Wachovia.

The stolen information included Social Security numbers, driver’s license numbers, account data, and other personal information used to generate fake driver’s licenses and fraudulent checks.

Bell and his alleged accomplices recruited “check runners” to pass the fraudulent checks, cufflinks authorities said. The organizers would collect the money and allow the runner to keep a small amount; many of the runners were drug addicts, officials said.

The transactions were for relatively small sums.

The alleged ring also got customer information from an employee at Colonial Penn Insurance, and from an employee at a used-car dealership, authorities said. A total of $1.3 million is believed to have been stolen.

Among those charged were Christopher Russell, 34; Kareem Russell, 31; Michael Marin, 31; and Tamika Brown, 32. All are from Philadelphia, and all are in custody. They had not yet entered pleas.

Other participants in the alleged scheme faced charges earlier in the investigation. Some have money clips pleaded guilty; others await trial.

Contact staff writer Nathan Gorenstein at 215-854-2797 or ngorenstein@phillynews.com.

“On the front line of consumers, parents going into stores, we want them to know that tiffany jewellery they should have increased confidence,” said Scott Wolfson, a spokesman for the U.S. Consumer Product Safety Commission. The reason: a new law went into effect this month that restricts lead and another potentially harmful substance, plastic softeners called phthalates, from children’s products.

Championed by Sen. Amy Klobuchar, D-Minn., the Consumer Product Safety Improvement Act was inspired in part by outrage over the death of a 4-year-old Minneapolis boy named Jarnell Brown. He was poisoned three years ago after he swallowed a lead charm that had accompanied a pair of Reebok sneakers.

“The death of Jarnell Brown had a major impact on our agency,” Wolfson said. Today, his agency’s inspectors patrol U.S. ports, armed with “XRF guns” that they use to sniff out lead in imported products.

The agency also has a bigger club to whack violators: the maximum penalty rose from $1.8 million to $15 million, he said. The $1 million fine paid by Reebok last year in Jarnell Brown’s case was the largest of its kind in the agency’s history.

Perhaps more significant than the new enforcement power, businesses are scrambling to ensure their products cufflinks don’t violate the new limits on lead and phthalates. The law requires manufacturers and importers to test their products and send the results to the government, but that provision was postponed for a year for certain products. Nevertheless, “major testing laboratories in the United States and around the world are overwhelmed right now,” Wolfson said.

That’s all well and good. But when one of those trinkets shows up in my house, and I don’t have an XRF gun, how can I be sure it’s safe?

If I know who made it or sold it, I can check the CPSC’s website to see whether the product has been recalled. Last year, products were pulled off the market in 70 recalls because of lead hazards. I know there are more lead-laced baubles than that.

So it comes down to common sense. Wolfson said that if your kids are young enough to put toys in their mouths, don’t give them any suspect money clips jewelry. The safety is worth putting up with the screams of indignation.

whistleblower@startribune.com

LOOKING UP RECALLS

To keep informed about dangerous projects, www.cpsc.gov has a database of more than 4,000 recalls going back to 1973. You can search by product type, product description, product category, company, hazard, country of manufacture or date. You can also sign up for e-mail alerts about product recalls. And the agency has a consumer safety hotline, 800-638-2772, which is staffed during business hours and takes messages anytime.

The Summit Birmingham location will be the company’s first store in Alabama. Chris Avery, chief executive officer, comments: “We are excited to be a part of this great community. The core values and philosophy of our company seem to be a good fit with the Birmingham market, so we are encouraged and look forward to all the new relationships. Our mission as a company is to share life, love and faith through the beauty of design, and we are hopeful that our jewelry will resonate with this new market.”

James Avery offers not only unique Money Clips jewelry and designs but also a personal experience for each and every customer. James Avery stores are meant to give customers the feeling of being in a comfortable living room, so even the display cases that showcase the jewelry are specially made by James Avery craftspeople. The quality of materials and attention to detail extends well beyond the jewelry itself. Chris Avery explains: “We believe in the total customer experience and that begins with the details. Our hope is that each extra detail that we put into our stores creates a unique experience for each of our customers to share. We want each and every customer to feel welcome and at home in our store.”

With the addition of The Summit store, James Avery will operate a total of 52 stores across Texas, Oklahoma, Colorado, Louisiana, Georgia and now Alabama. Birmingham customers are invited to learn more about James Avery and the new store at The Summit by going online to: www.jamesavery.com/thesummit.

About James Avery – Established in 1954, James Avery is a family-owned jeweler that offers high quality, hand-crafted pendants jewelry in sterling silver, gold and gemstones. From a one man endeavor in his mother-in-law’s garage, James Avery has grown into a team of 1,400 designers, craftsmen, sales associates and support staff offering unique designs to customers throughout the nation. James Avery maintains over 1,100 designs in the active product line. Each design is originated by skilled men and women in the James Avery design studio and then finely crafted and produced by skilled artisans predominantly in the Texas Hill Country. James Avery jewelry is available at retail stores and online at www.jamesavery.com.

“We are always looking for innovative ideas to develop fine jewelry and the Nickelodeon partnership to license SpongeBob is the perfect addition to the Simmons Jewelry Co. family,” said Russell Simmons, who will be on-hand to announce the partnership in Park City.

Marking the first luxury brand jewelry partner for SpongeBob SquarePants, the collection will be available for both men and women. Available at fine jewelry and specialty retailers in fall 2009, the products will retail from $150 to $75,000.

“We are so thrilled to partner with the innovators at Simmons Jewelry Co. for such a creative, and absolutely beautiful SpongeBob SquarePants jewelry collection in celebration of its 10th Anniversary year,” said Hal Snik, Senior Vice President of Domestic Licensing, NVCP. “Simmons Jewelry Co. has a unique ability to reinterpret iconic brands into beautifully crafted jewelry, and their work with SpongeBob is going to yield an absolutely gorgeous line appealing to die-hard fans and trendsetters.”

“Simmons Jewelry Co. is very excited for the opportunity to work with a global empire such as Nickelodeon, and are thrilled about combining SpongeBob’s universal appeal with our creativity and industry knowledge,” said Scott Rauch, President and CEO of Simmons Jewelry Co. “The development of SpongeBob jewelry has been a tremendous creative experience which we are excited to share with our retail partners and consumers. This fine jewelry collection will help further fill a void in the marketplace for the trendy and fashion forward consumer.”

Yellow is the new black this year, so it’s time to get ‘Happy Squared’ in honor of the landmark Money Clips 10th anniversary of SpongeBob SquarePants. Kicking off during the 2009 Film Festival in Park City with the first-ever SpongeBob live cast reading, Nickelodeon will celebrate the pop culture icon throughout the year with TV specials, original online content and new lines of apparel, toys and games. SpongeBob also will be a featured part of Nick’s multi-year pro-social campaign, The Big Green Help.

SpongeBob SquarePants is one of the most popular series in kids’ television history. It has been the number-one animated program with Kids 2-11 for more than six consecutive years and its Saturday morning airing ranks as the top-rated program on television among Kids 2-11. Adult viewers also continue to tune in and have increased by 121% since the premiere of the show in July 1999 (Nielsen Media Research, based on A18-34 (000), September 2008 vs. July 1999, all SB telecasts combined). Nearly 70 million viewers watch SpongeBob SquarePants monthly (Nielsen Media Research, May 2008). The most widely distributed property in MTV Networks’ history; SpongeBob SquarePants is syndicated in 171 markets in 25 languages and is among the top rated kids’ shows, across broadcast and cable, in every major television market around the world.

About Simmons Jewelry Company, LLC

Simmons Jewelry Co. is where fashion meets fine jewelry. The company is quickly emerging as an industry leader and design innovator in all jewelry categories. SHR & Simmons Jewelry Group holds the licenses to Kimora Lee Simmons for Hello Kitty fine jewelry and watch collections (North America), Hello Kitty by Simmons Jewelry Co., Baby Phat Fashion Watch Collections, Simmons Jewelry Co. Steel Collection and Brown Sugar by Justine Simmons. Simmons Jewelry Co. can be found in premier jewelers and fine department stores including Kay Jewelers, Jared the Galleria of Jewelry, Zales, Gordon’s Jewelers, , Neiman Marcus and Macy’s Department Stores. For more information about Simmons Jewelry Co. and retail locations visit www.sterlingtiffany.com

About Nickelodeon & Viacom Consumer Products

Nickelodeon & Viacom Consumer Products manages the world’s third largest licensing business, pendants representing leading properties such as SpongeBob SquarePants and Dora the Explorer, and managing merchandising for Nick Jr., Nickelodeon, Comedy Central, MTVN International, and Spike TV.

Nickelodeon, now in its 30th anniversary year, is the number-one entertainment brand for kids. It has built a diverse, global business by putting kids first in everything it does. The company includes television programming and production in the United States and around the world, plus consumer products, online, recreation, books, magazines and feature films. Nickelodeon’s U.S. television network is seen in more than 96 million households and has been the number-one-rated basic cable network for more than 14 consecutive years. Nickelodeon and all related titles, characters and logos are trademarks of Viacom Inc. (NYSE:VIA)(NYSE:VIA.B).

Mass retailers use its versatility to show value and variety in assortments ranging from $9.99 earrings to $800 rope chain necklaces– with charms, pendants, bracelets and rings filling price tiers along the way.

Each item plays a role in this complex category, as 18 jewelry showcases are common at chains such as Ames and ShopKo, and Wal-Mart carries as many as 4,000 different skus, including a well– developed bridal business. That’s not all gold, of course.

At Ames stores, for instance, which will reach 450 in number once it converts all the acquired Hills units, tiffany & co jewelry offerings include lOK and 14K gold, sterling silver, watches, precious and semiprecious gemstones, diamonds and bridal. “We watch our sku count very carefully because this is a business that can easily get overassorted,” says Sandy Sansavera, senior vice president and general merchandise manager, soft lines at Ames.

Items range from an opening price point of $5.99 for a silver pendant to a sale-priced $299.99 diamond solitaire ring. Gemstone rings are always lOK, and Ames’ highest priced gold chain is $199.99.

That brings value to consumers and meaningful profits to the chain. “Jewelry margins exceed the chain average by five to six points; transactions are higher, and turns are slightly better than some of the apparel areas,” Sansavera adds.

Jewelry gets strategic front-of-store placement because “customers fall in love with it; it helps the store’s traffic pattern, and it shows how new and up-to-date we are on accessories,” he says.

The full-service jewelry area is the first merchandise that customers see when entering an Ames. (ShopKo also positions jewelry front and center.) “We’re very specific on planograms. Ninety-five percent of our assortments are the same in every store; shoppers know what to expect, and trained back-up staff is familiar with it all. As a chain, we’re where we need to be, although we might stretch the price range in an exclusive group of stores for the holidays,” Sansavera says.

“Jewelry satisfies a true ego [need] of the consumer. People give each other a lot of credit for jewelry purchases, and they’re very vocal when they feel they got a great bargain,” he observes.

To keep consumer confidence high in jewelry, Ames introduced a new showcase presentation that’s whiter and brighter and continues to display prices to help people self-edit their selections. Sansavera says his diamond and bridal businesses have been very strong the past two years. “As people get used to more mass product, they’ll accept there’s quality to it,” he says. As a result, he feels Ames will be ready to test a bridal registry in the year 2000.

By contrast, the 158-store ShopKo has no any bridal business. It focuses instead on 10K and 14K gold, sterling silver, watches, gemstones and diamonds up to a half-carat in total weight. The chain committed this past fall to diamonds as a chainwide fashion business, emphasizing cocktail rings and pendants, after testing in 30 stores last Mother’s Day. “We’d need a lot more expertise behind the counter to sell bridal,” says Kathy Steirly, divisional vice president, women’s accessories, fine jewelry, watches, cosmetics and fragrances for ShopKo. “Diamonds are new for us, and we’re extremely excited about it.”

She anticipates that diamonds will generate 10 percent to 15 percent of total dollar volume in 1999; Black Hills lOK gold about 33 percent; 14K gold percent; and gemstones and sterling silver the rest. “We’re running double-digit growth in our core gold jewelry business for five straight years, driving strong departmental gains during the same period,” she adds, citing overall jewelry margins in the high 30s.

Like many in the business, ShopKo is a high/low operator, selling percent of its jewelry at sale prices that are percent to percent off of everyday tickets, and advertising the department at least once a month. Circulars give jewelry front covers during peak seasons, and TV and radio campaigns run three times per year.

The chain’s highest price item is an $800 gold rope chain at regular price. For all the promotional excitement, however, people want quality and value, Steirly says.

We exited costume jewelry, and sterling silver is tremendously strong for us, starting at $5.99 for opening price point pendants. In diamonds, our customers don’t accept the flashy glitter pieces.

“Not everybody knows a lot about jewelry, but our customers know we’ll stand behind what we sell. People can return for any reason. We offer ring-sizing and special orders at no charge.” The chain also has brochures to teach about its specialty products, such as Black Hills Gold, a novel tri-color line of lOK gold bonded with other metals in rose, bronze and greenish tint.

“It’s unique to our part of the country and comes from the Black Hills of South Dakota,” she explains.

ShopKo certainly sees jewelry as accessories to apparel but isn’t setting up secondary displays within ladies’ wear. “It’s a maintenance issue of getting it done correctly in the stores,” observes Steirly, who spent 14 years at Target before coming to ShopKo nearly seven years ago.

However, the chain is experimenting with self-service countertop displays with items such as 14K earrings on sale at $9.99. And by this Christmas, about 60 percent of its watch inventory will be on open sale. “We tested last December and were pleased with the growth we saw,” she says, noting an assortment of Timex, Armitron dress and sport, B.U.M. license and private label ranging from $9.99 to $49.99.

Most jewelry offerings at ShopKo are for women, though men can choose from a selection of watches, 14K or Black Hills chains, 8-in. bangles , bracelets, and, on a seasonal basis, Money Clips, tie tacs and rings.

“Jewelry is like every other business. Make sure you’re on top of what’s new, what’s growing and making it great,” Steirly adds. “I don’t see any new categories or surprises coming at us.”

Of course, good planning means few surprises, and mass chains lean on their suppliers for consumer insights, hot product trends, new technologies and profitable strategies. ShopKo, for instance, relies on several sources for market intelligence.

Claudia Hollingsworth, senior vice president, sales at OROAmerica, a major supplier of gold products and one of ShopKo’s trading partners, pinpoints her company’s position: “We’re in a unique place between romancing a piece of jewelry and explaining that it’s fine quality. Jewelry isn’t a reach for mass consumers. Every woman in the world wants a piece of jewelry, whether she’s spending $75 or $1,000. The trick is making that jewelry the best bargain they can find. We have to create a desire to own it.”

David Schwartz, corporate director of marketing at ORO, adds: “In many suburban and rural communities, there may be no other retail choice but Wal-Mart or Kmart. You can’t think about Tiffany or Fortunoff. People go to the stores to check it out, driven in part by surfing on WebTV or watching QVC.”

Power retailers have grown bolder in jewelry in response to consumers’ reliance on them. Kmart, for instance, now places jewelry departments on the main traffic aisle of every new store. Target has created an accessories core in the middle of ready– to-wear, with gold jewelry flanked by watches and fashion jewelry, as well as belts and purses. Wal-Mart has built jewelry into a high-volume area across from high-traffic consumer electronics.

Those efforts will be even more productive if chains would designate category captains, says Mark Hanna, senior vice president, sales and marketing at Michael Anthony Jewelers. “No other departments would have anything comparing to, say, 16 vendors for a 96-charm program. When we get buyers to see their own departments through the eyes of consumers, they come around. We’re looking at a future world where data management is the key, and every store stands on its own performance matrix.”

The offer boosted Reeds’ stock price 62 percent to close at $1.80 Tuesday.

Reeds went public in 1986, but the Zimmer family retained ownership of more than three-fourths of the company. Now, after three financially difficult years, the four children and wife of William Zimmer, the company founder who died in July 2002, said they will pay $1.85 per share for the roughly 1 million shares they do not already own.

Alan Zimmer, the chief executive officer, declined to comment. David Johnston, Reeds’ attorney in the offering, did not return a phone call.

Larry Robbins and Gerald Roach, two Raleigh securities lawyers, said that increased regulatory costs and a flagging share price could prompt a small company such as Reeds to turn its back on Wall Street. By going private, companies can avoid the increased legal and accounting costs that have come with new federal regulations, Robbins and Roach said.

Investors value Reeds at about $13.5 million. By comparison, industry giant tiffany & co is valued at $6.5 billion.

During the economic downturn, many consumers cut spending, which pummeled the jewelry industry, said Ken Gassman, a former industry analyst.

For example, industry sales declined 6 percent during January, February and March 2001 and an additional 17 percent during the quarter that included Sept. 11, 2001.

Reeds stock has lost more than 70 percent of its value since January 2000.

Alan Zimmer, one of Roberta and William Zimmer’s three sons, rose to the helm of Reeds in February 1986, and took the company public that year.

Over the next 14 years, the number of Reeds stores grew from 28 to 120. Annual sales peaked at $120.9 million in 2000, according to filings with the U.S. Securities and Exchange Commission.

When the company’s last fiscal year ended, Feb. 28, annual sales had declined 15 percent to

$102 million and profits had turned to losses two years in a row.

Reeds has closed 29 stores in the past three years, cut more than 150 positions and finished a company restructuring to reduce operating costs.

As the economy began to recover this year, the jewelry industry reported sales increases that outpaced average increases for retail sales, Gassman said.

For example, Tiffany Money Clips reported a 20 percent increase in U.S. sales during the quarter from July to September. Kay Jewelers, a mall retailer and competitor of Reeds, reported an 8 percent sales increase for the quarter.

Reeds reported a 2 percent sales increase but lost money for the quarter.