Court Orders Chain to Stop "Going Out of Business" Sales

By Rob Bates, JCK Senior Editor

Posted on December 23, 2009

International Diamond and Gold is now really going out of business.

After conducting "going out of business" sales for over six months, International Diamond and Gold Company has been ordered by an Ohio court to stop.

A local judge this week granted Ohio Attorney General Richard Cordray's request that International Diamond and Gold Company, an eight store chain based in Columbus, stop conducting its going-out-of-business events in Ohio. The company, which has four stores in Central Ohio, announced it was closing in May. 

A statement from the Attorney's General office charged that IDG has been conducting "going out of business" sales for more than 90 days and was supplementing inventory during the sales, both violations of Ohio law. Cordray's office launched an investigation into IDG's sales in August. On Aug. 27, the Attorney General issued a cease and desist notice. The court ruling on the case came Dec. 16. 

"When a going-out-of-business sale lasts for months on end, it's deceptive and unfair to consumers who believe they're getting the best deals and the lowest prices," said Cordray.

Bob Epstein, CEO of Silverman Jewelry Consultants, which is running the sales, told JCK the stores will close in Ohio on December 24 and in Seattle on December 31.

"Running the sales through Christmas was the best way to maximize revenue for the bank," he said.