The home-sales company had been losing money since 2010, reports say
Silpada Designs, a home-sales silver jewelry company briefly owned by Avon, is closing down on July 31, according to news accounts and an FAQ for sales reps posted online.
In 2010, Avon Products bought the Lenexa, Kan.–based company for $650 million, one of its largest acquisitions in years. Its founding families eventually repurchased it three years later for $85 million.
“Since the reacquisition from Avon three years ago, the founding families, many representatives, and our dedicated internal team, have worked tirelessly and passionately to turn this company around from the negative trends we have faced for the last six years,” read the FAQ. “We have come to the stark realization that our love, commitment, and these additional investments are not enough to reverse or even stabilize our sales revenue, party, and recruiting trends, all of which continue to significantly decline.”
Founded in 1997 by two stay-at-home moms (and one husband), the company had revenues of $230 million in 2010, according to The Kansas City Star. Executives told the newspaper the company had not been profitable since 2010.
“Today, you have almost the complete opposite number of women who start out in the workforce and careers, and everybody’s so busy that even just a little side job of selling jewelry is hard to fit it in,” the company’s vice president of marketing and development, told the Kansas City Business Journal. “The home party is the heartbeat of this business, and women don’t party the way they used to.”
The company’s listed PR contact did not return a request for comment.