House of Taylor Jewelry Inc. (OTC: HOTJ) is closing up shop, according to The New York Post. Elizabeth Taylor and Kathy Ireland, the company's celebrity spokespeople, have severed their ties with the company, leaving New Stream Secured Capital to forage for the $11 million it's still owed.Taylor and Ireland reaped generous license fees for their participation in the venture and also owned a combined 49.5% stake in the venture.
Having debuted at $4 per share in 2006, House of Taylor closed on Tuesday at less than 4/10th's of one penny. The failure of this company could hardly be considered surprising. The company's large debt load makes this a tough economic environment to execute a turnaround and it seems doubtful that has-beens like Kathy Ireland and Elizabeth Taylor have sufficient selling power to justify their licensing fees.
Looking through the S&P list of jewelry companies, I'm having trouble finding one whose stock has been up over the past 52 weeks.
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