Gems TV To Shut Down And Buy Stake In Jewelry Television, And An Unhappy DirecTV Files Suit And Gets Restraining Order

Thanks to a tip from one of our fans, we’ve wised up to the fact that financially struggling Gems TV is going black in the United States — and that DirecTV has filed suit against the home shopping channel over its demise.

Earlier this month Gems TV’s Singapore-based parent company, Gems TV Holdings Ltd., announced that it was ceasing the network’s operations and buying a 37.8 percent stake in its rival, Jewelry Television, known as JTV. Gems TV will end its operations whether or not its deal to buy into Jewelry Television, whose parent company is Multimedia Commerce Group Inc., closes.

“Since its entry into the U.S. in November 2006, Gems TV has struggled to achieve the necessary operational and economic scale that would enable it to thrive in that market,” the network said in its March 8 press release. “The Group’s margins and profitability have been under constant pressure from the extremely challenging and unpredictable economic environment.”

The press release also had a statement from Gems TV chairman Jason Choo.

“We are putting a stop to the operational cash drain in the U.S. which is clearly a disappointing outcome,” Choo said. “However, if the proposed investment completes, it will allow us to immediately increase our proportionate share of the U.S. jewelry market. Both parties believe that a significant portion of our revenue will migrate to MMCG once we cease broadcasting and MMCG is in an ideal position to leverage off that additional revenue.”

In the fiscal second quarter ending Dec. 31, Gems TV saw its product revenue drop 15 percent, to $40.2 million. Gross profit rose 27 percent, to $16.5 million. The loss attributable to shareholders was $6.3 million, down from $18.5 million the prior year.

Last Thursday Gems TV announced the satellite provider DirecTV had filed for a temporary injunction against it in U.S. District Court in California. There was also a retraining order issued barring Gems TV from taking any action that will leave the network with less than $25 million in money or assets, until further order of the court.

Gems TV said that DirecTV’s claims are without merit and that it will contest them. We couldn’t reach our buddies at DirecTV yet Wednesday morning: They are out in El Segundo, Calif.

JTV will incorporate Gems TV’s reverse-auction program with its existing fixed-price selling programs.

“I believe Jewelry Television represents the very best that the jewelry TV and Internet shopping industry has to offer consumers and is also a cut above the rest of the players, in terms of its established branding, market position and scale,” Choo said. “We are very confident that our proposed investment in JTV would give both parties the best vantage points from which to grow, and we look forward to sharing in the success of Jewelry Television.”

Tags: , , , , , ,

6 Responses to “Gems TV To Shut Down And Buy Stake In Jewelry Television, And An Unhappy DirecTV Files Suit And Gets Restraining Order”

  1. Ron Lappreau Says:

    I’m sorry to hear you’re going off the air.
    One day I was flipping through the channels and landed on Gems TV while someone was explaining what a baguette style is. Everything interests me so I started watching for the educational experience. Then I saw Lyndsey and the hook sank deeper. She is so severely gorgeous! If you merge with JTV I hope she’s there. If not, I’m sure Hollywood has a job for her. Best wishes.

  2. While We Were In Atlantic City, Gems TV Filed For Chapter 11 Protection In Nearby Delaware « Homeshoppingista's Blog By Linda Moss Says:

    […] Wall Street Journal wrote up the Gems TV bankruptcy […]

  3. Linda Says:

    I’m a Gem’s collector, and the host’s on JTV are knowledgeable GIA graduates.
    I recently an article in a financial newspaper they spend several millions to provide the best customer service, and they do.

    I have caught Gems TV for misleading, and I wrote to customer service they were in violation of fraud, and I would report them to the FTC if it didn’t stop. The hosts also lack gemology knowledge.

    • April Peach Says:

      Seriously?? The two don’t even compare. I have seen the format, the product , and the hosts of JTV and GTV is far superior in all caterories. Please proof read your posts beore sending. The grammer is as poor as the hosts on JTV.

  4. Monalisa Says:

    I have bought and watched gtv and I like it very much. Lyndsey is a very good presenter she takes pride in what she does. And when i bought my diamond ring it was just as they decribed. It is just great and hope 2 see them on jtv soon.

  5. Fashion Says:

    I think this is among the so much vital info for me. And i am satisfied studying your article. But should commentary on few basic issues, The site taste is great, the articles is in reality nice : D. Just right activity, cheers

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: