House of Taylor secures loan after 2005 losses
National Jeweler, NY
MAY 09, 2006 – Los Angeles — House of Taylor Jewelry, which suffered losses for its fiscal year 2005, has secured $10 million in financing from investors to buy inventory and to use for marketing and working capital, the company announced Monday.
House of Taylor Jewelry saw sales of $5.61 million and a net loss of $3.5 million for the year ended Dec. 31, 2005.
It attributes the loss to numerous factors, including a restructuring, a focus on designing and sourcing new products; developing sales and marketing strategies; reducing inventory of discontinued product; and increased research, development and marketing, according to a May 1 press release from the company.
In May 2005, the company underwent a restructuring after acquiring the licenses to market jewelry under several new brand names including Elizabeth and House of Taylor Jewelry (both designed by Hollywood legend Elizabeth Taylor) and Kathy Ireland for House of Taylor Jewelry (designed by retail mogul and former model Kathy Ireland).
The company launched the new merchandise during the Las Vegas market week in June. In connection with the restructuring, the company saw one-time expenses of $656,000 and non-cash amortization of about $590,000. This year, it will be back in Vegas with new merchandise.
“We have over 200 new items throughout the collections, designed and personally selected by Dame Elizabeth and Kathy Ireland, that we plan to introduce to the trade at Couture, Signature Salons and JCK Las Vegas at the end of May,” Jack Abramov, House of Taylor’s chairman and chief executive officer, said in a release. The company plans to grow its retail distribution network this year, and is negotiating to align with manufacturers and suppliers to offer luxury products at competitive prices, he added.
House of Taylor used about $4.9 million on operating activities in 2005 and had an accumulated deficit of about $2.9 million as of December 31, 2005.
