Elizabeth Taylor, Kathy Ireland Pull Out of HOTJ

After months of struggling, House of Taylor Jewelry (HOTJ) revealed today that Elizabeth Taylor and Kathy Ireland have terminated their license agreements with the embattled company. HOTJ said in the SEC filing that it is “unlikely” it will be able to remain in business.

In the filing, HOTJ said it received notice last Thursday from Interplanet Productions Ltd, Taylor’s branded jewelry the marketing firm, that it is terminating the exclusive worldwide license agreement to use her name or market and manufacture under her name.

The Licensing agreement included jewelry, diamonds, watches, bridal adornment and more under the Elizabeth, ET and House of Taylor marks.

On the same day, HOTJ received a termination notice from Sandbox Jewelry LLC, a subsidiary of Kathy Ireland Worldwide, that ends an exclusive license to distribute jewelry under the Kathy Ireland mark.

The company said it is dependent on the license agreements with the two ”for the implementation of [its] branded business model.” HOTJ is now obligated to change its name and will no longer be able to sell jewelry under the House of Taylor Jewelry brands and designs.

“The termination of the License Agreements will have a material adverse impact on our relationship with our suppliers, retailers and consumers and it is unlikely that Registrant (HOTJ) can remain in business and may be compelled to liquidate,” the company said.

In the same filing, HOTJ noted that Peter Mainstain has resigned from the board of directors and that President and CEO Lyle M. Rose notified the company that he considers the non-payment of his salary as his termination from his posts.