Collectors Universe Exits Jewelry Grading Business
By JCK Online Staff -- JCK Online, 3/2/2009 3:31:00 PM
Collectors Universe, Inc. on Monday announced that it will exit the business of authenticating and grading diamonds and colored gemstones, effective immediately. The grading and authenticating company said it will contnue to license the Gemprint identification technology and related patents and Howard Pomerantz continues to manage the licensing effort.
"We incurred impairment charges with respect to our jewelry businesses at June 30, 2008, and again at Dec. 31, 2008, due to the severity of the economic recession and the worsening of the credit crisis in the United States and the resulting uncertainties as to the level of revenues we could expect from our jewelry businesses in future periods,” said Michael Haynes, Collectors Universe chief executive officer. “The continuation and possible extension of these economic conditions has led us to conclude that it is unlikely these businesses will be able to achieve the goals we had established for them when we first acquired those companies. As a consequence, management and the board of directors have decided to exit the jewelry businesses, which will enable us to give full attention to and focus our significant resources, energy and liquidity on our core businesses in collectibles, where we have decades of experience and a proven record of success."
Haynes continued, "Our collectibles grading businesses are fundamentally healthy with strong market positions and positive cash flows and we are continuing to lower costs and increase efficiencies in these areas. Importantly, the company's overall financial condition remains excellent."
