Collectors Universe Exits Jewelry Grading Businesses
March 03, 09Collectors Universe, Inc. has decided to immediately exit the diamond and colored gemstone grading business. The company cited revenue “uncertainties.” as the reason behind its departure. Collectors Universe, which operates diamond grading lab GCAL (Gem Certification & Assurance Lab) and colored gemstones lab AGL (American Gemological Laboratories), has not named the labs it intends to close.
The company noted that it will continue to license the diamond identification and registration system Gemprint and related patents. Howard Pomerantz will manage the licensing effort.
“It is unlikely these businesses will be able to achieve the goals we had established for them when we first acquired those companies,” Collectors Universe CEO Michael Haynes said, noting the chance that the severe economic recession and the worsening of the credit crisis in the U.S. will continue.
“We incurred impairment charges with respect to our jewelry businesses at June 30, 2008 and again at December 31, 2008," Haynes said with regard to the labs' performance.
While Haynes did not discuss the future of the company's online diamond and colored gemstone exchanges, he did say, “management and the board of directors have decided to exit the jewelry businesses.”