This week, the JBT Weekly Alert featured 62 updates on jewelry businesses, including several notices of relocations.  You may be wondering: why does JBT report on relocations, and what could frequent moves mean for a business?

While a single relocation may not be a red flag—after all, who among us hasn’t moved before?—frequent relocations should give you pause. Here’s what it could signal when a business relocates a lot:

1. Attempts at Hiding From Creditors.

Businesses might relocate frequently to avoid paying creditors. This is something JBT has witnessed over and over again. When a company moves to a new location without notice, it's more difficult for creditors to track them down for repayment. In the jewelry industry where large amounts of credit are often extended (and let’s not even get started on memo transactions) behavior like this should raise serious concerns. 

2. Efforts to Avoid Scrutiny.

Frequent relocations could indicate that a company is trying to fly under the radar. If a business is involved in fraudulent activities, they may move often to avoid drawing attention from authorities or even customers who could become suspicious. By constantly changing locations, it becomes more difficult to link their actions to a specific address and connect the dots that would lead to them. 

3. Financial Instability. 

Another possibility for frequent relocations might be financial instability or poor financial management. Maybe the company can't afford the rent, or their business isn't performing well in their current location. Suppliers may be some of the last to be paid if a business is struggling to stay afloat.

What Is JBT Doing About It? 

We make sure our credit reports include the latest contact details, thoroughly investigate address changes, and keep record of consecutive relocations, so you can make informed decisions on who you partner with. Plus, with the JBT Weekly Alert, you’re the first to know when a business relocates. 

The JBT Weekly Alert keeps you updated on jewelry business discontinuances, ownership changes, bankruptcies, relocations, credit rating changes, new business listings, and more—just the information that might impact your decision on whether to work with a new customer or offer certain terms to an existing one.