Monday, April 5, 2010
Gems TV just filed for Chapter 11 bankruptcy protection. Apparently, Gems TV has always struggled to be profitable and the recession coupled with the skyocketing price of gold just sent them straight down the tubes.
Last month Gems TV announced that they will be shutting down their U.S. operations. But it's not as simple as turning off the cameras and just hanging an "Out of Business" sign on the door. Their Cayman Islands-based parent company, which is traded on the Singapore Stock Exchange, also put in a bid to buy a big stake in their U.S. rival Jewelry Television.Compose
And, according to the Wall Street Journal, even though Gems TV reported that they have about $51 million in assets and $120 million in liabilities and the bankruptcy will be leaving many of their creditors high and dry, the bankruptcy doesn't do anything to hinder their bid for JTV.
On top of all that, after Gems TV notified their satellite providers that they would no longer be broadcasting, DirecTV filed a $25 million lawsuit against Gems TV for an allegedly breaching their affiliation agreement. According to the National Jewelry Network, DirecTV "sought a preliminary injunction to prevent Gems TV from transferring or disposing of any of its assets outside the ordinary course of winding down the business. A hearing in that case was scheduled to take place April 19, but was stayed by the commencement of the Chapter 11 filing."
Honestly, I'm still trying to get a handle on exactly how this whole Gems TV shutting down U.S. operations and buying a big chunk of Jewelry Television thing will shake out. Will some of the Gems TV hosts be going to JTV? If so, will Karen Connelly and Skip Connelly be reunited? What will JTV do with this big infusion of cash? Will JTV go to the horrible "reverse auction" selling method?
March 2 - Gems TV announced that they were ceasing their U.S. operations
March 8 - Employees were notified that they would have their jobs until May 6
March 8 - Satellite television providers were notified that Gems TV would no longer broadcast after
April 5 - Gems TV files for bankruptcy
April 15 - Gems TV will stop broadcasting
May 6 - Last day of employment for Gems TV employees