House of Taylor Closes Doors
By Anthony DeMarco -- JCK Online, 8/1/2008 2:00:00 AM
Under the weight of more than $11 million in debt, without access to operating funds, with the loss of its two brand icons, and without even a name to operate under, the former House of Taylor executed a peaceful possession of collateral with the lending company that has been financing its survival.
New Stream Secured Capital, Ridgefield, Conn., now owns what’s left of the West Hollywood, Calif.–based jewelry company. House of Taylor owed the specialty financial company nearly $11.2 million plus interest, commissions, costs, expenses, attorneys’ fees, and other charges or contractual obligations.
The filing came after the company announced that Dame Elizabeth Taylor and Kathy Ireland terminated their licensing agreements, saying that the company is insolvent. In addition, Lyle M. Rose, president and chief executive officer, left the company after it failed to pay his salary.
Taylor and Ireland were among the principal shareholders and were the identity for the company, which specialized in manufacturing, marketing, and distributing jewelry under the Elizabeth, House of Taylor Jewelry, and Kathy Ireland Jewelry brands as well as the sale of loose diamonds.
The other principal shareholders, Jack Abramov, the former chairman, president, and chief executive officer, and Monty Abramov, former secretary and vice president, resigned from their positions in April.
In addition, the company said all funds it receives are being deposited into a restricted account of New Stream to which it has no access.
