868984--4/17/2006--WHITEHALL_JEWELLERS_INC

related topics
{cost, regulation, environmental}
{regulation, change, law}
{customer, product, revenue}
{condition, economic, financial}
{financial, litigation, operation}
{interest, director, officer}
{stock, price, operating}
{personnel, key, retain}
{stock, price, share}
{debt, indebtedness, cash}
{capital, credit, financial}
We have recorded substantial net losses and declines in comparable store sales in recent periods and there is no assurance that we will not continue to incur substantial losses and declines in comparable store sales. Our current levels of debt could impact our operations in the future. We have undergone substantial changes, which could adversely affect our business. Our independent registered public accounting firm has doubt as to our ability to continue as a going concern. Our quarterly operating results will fluctuate due to seasonality and other factors, and variation in quarterly results could cause the price of our common stock to decline. Our business is particularly susceptible to adverse economic conditions. If we lose key personnel or are unable to attract additional qualified personnel, our business could be adversely affected. A decrease in the availability of or an increase in the cost of consumer credit could have a negative impact on our business. We depend on our major suppliers and on the availability of merchandise, including consigned merchandise, and we will need their support to maintain our liquidity. Our business is particularly susceptible to fluctuations in gem and gold prices. We are faced with securities litigation, stockholder derivative litigation and other proceedings that could be material and we are subject to restrictions set forth in a non-prosecution agreement. We may have to take additional accounting charges on our financial statements. The costs associated with our store-closing program may be material. We are subject to substantial regulation. As a result of the purchase of our common stock under the Offer, trading in our common stock may be more difficult.

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