While We Were In Atlantic City, Gems TV Filed For Chapter 11 Protection In Nearby Delaware

The Homeshoppingista took a little R&R Monday with an overnight trip down to Atlantic City with dad, sister Karen, brother-in-law Kent, niece Syndey and nephew Evan. The weather was gorgeous, but since we don’t have a laptop we had to take a siesta from the blog.

Now we’re trying to update you on the Gems TV story even though we’re straining our neck to turn around and peek at “Southland” on TNT. But blog duty calls.

It seems that while were were strolling along the AC boardwalk Monday, Gems TV was busy filing for Chapter 11 bankruptcy protection in Delaware. Gems TV posted a one-paragraph press release about the filing on its Web site Tuesday.

“Gems USA has, after due consideration, determined that the Chapter 11 proceedings is the best exit strategy to adopt to ensure an orderly winding down of its U.S. operations,” the release said.

After a tip from a reader, last week we broke the story about Gems TV planning to shut down operations and buy a stake in Jewelry Television. We also wrote that giant distributor DirecTV has filed suit and received a retraining order against the network over $25 million in revenue that the satellite provider apparently believes it is owed.

The Wall Street Journal wrote up the Gems TV bankruptcy Monday.

For cable insiders, Gems TV’s president is Diane Schneiderjohn, a former marketing executive at Charter Communications.

In the bankruptcy filing, according to The Journal, Gems TV is claiming it has $120 million in debt. The network, unlike other home shopping networks, makes its viewers bid for items via what it calls a reverse-auction format. Guess that has not gone so well, and soaring gold prices have also strained the network.

The bankrupty filing says that Gems TV has $51.2 million in asets, according to The Journal.

The networks employees will join the unemployment line, like us, May 6. Gems TV claims it has 37 million subscribers.

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One Response to “While We Were In Atlantic City, Gems TV Filed For Chapter 11 Protection In Nearby Delaware”

  1. Miriam Mars Says:

    I just hope that some of the GEMS TV hosts make the move to JTV. They will add some much needed beauty to the host line up at JTV. I have loved watching them at GEMS TV and have some beautiful pieces to show for it. I hope to Lindsey and Katie and some of the others in Knoxville really soon!

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