Gems TV Holdings Limited to sell GemsTV UK

<img src="http://www.shoppingtelly.com/images/gemstv/sale.jpg" border="0" alt="GemsTV" title="GemsTV" hspace="5" vspace="4" width="208" height="203" align="right" />The Board of Gems TV Holdings Limited have announced that the Company had on 12 May 2010 entered into a conditional sale and purchase agreement (the "UK Sale Agreement") with The Colourful Company Group Limited ("CGL") pursuant to which the Company has agreed to sell and CGL has agreed to purchase the entire issued and paid-up share capital of Gems TV (UK) Limited ("Gems UK") for a consideration of £3.0 million ("Sale Consideration") (subject to adjustments), to be satisfied in cash (the "Proposed UK Sale ").<br /><br />CGL is a UK based family-owned jeweller that sells handcrafted gemstone jewellery primarily via its internet site <a href="http://www.colouredrocks.com">www.colouredrocks.com</a>. CGL also operates a web based auction website <a href="http://www.rocks.tv">www.rocks.tv</a> which in January 2010 also started to simulcast its broadcast on Sky television.<br /><br />The Proposed UK Sale would allow the Company to exit a market which has become highly competitive and suffering from general economic challenges beyond the Company’s control.<br /><br />Since the Company commenced selling jewellery via reverse auction in the UK, three new competitors dedicated to selling jewellery via reverse auction on television now directly compete with Gems UK. As at the date of this Announcement, Gems UK is in a loss-making position and it is draining cash resources. The Company believes that the overall outlook for the market in the UK in the foreseeable future is poor and will remain highly competitive.<br /><br />If the Proposed UK Sale does not complete, it is likely the Company will have to shut down its business operations in UK and liquidate the assets of Gems UK accordingly. The Company believes that such a liquidation process will realise significantly less cash (if any at all) than what the Proposed UK Sale will generate.<br /><br />All conditions precedent being satisfied as soon as practicable and in any event no later than 6 p.m. on 30 June 2010 (or such later time and date as may be agreed in writing by the Company and CGL).<br /><br />This morning ShoppingTelly.com had an informal chat with Steve Bennett, for obvious reasons Steve will be making no comment at this time.

Hi all
I am very sad that this has happened to Gems TV. My refund has just gone through for my pads.
Andy has been wonderful and very professional. I hope that Gems management can come to an agreement with SB to secure the Gems TV operations future.
My heart goes out to the staff and presenters and Gems TV at this difficult time.
Keeping my fingers crossed!

Sapphireblue

How interesting!

wow I hope Steve can turn gems tv around to how it used to be when he ran it,
And I’m very surprised to hear that gems tv uk is a cash drain, after America, so what’s left, gems tv Japan? Very interesting!

Back to Papa? The trouble at Gems is sad, but inevitable news I'm afraid. I think many on this forum have suspected it for a long time.
It will be very interesting to see what Steve does with the company. Run it alongside Rocks, amalgamate the two or wind it down?
This reminds me of the particularly vitriolic email that Graham received not so long ago from someone 'in the know' claiming that all was going brilliantly and that he and other critics on this forum were complete ignorant idiots (and that's the polite version!). Ostrich with head in sand comes to mind.

My thoughts go out to the staff never easy trying to work when you are worrying about job uncertainty,its ironic there is an ultraclearance on with prices more akin to the old days

I'd be surprised if Steve kep Gems running as a separate channel - amalamating it with Rocks TV seems the most likely solution.

I've had some lovely things from Gems over the years, and I'll be sad to see them go. But the market was very overcrowded, and it was clear that it couldn't sustain four separate channels indefinitely.

very interesting news. i can't see how Gems will continue to run on tv if the sale goes through, surely it's a case of Steve buying up the competition/name/stock before they went 'pop' leaving nothing. perhaps keep Gems going via the web? Steve must think the brand is worth something to him for future trade...i wonder if the customer database & stock could be worth the £3m sales price?

definitely not great for all Gems staff though, very uncertain times for them & i really can't see staff levels being the same as they are now, whatever Steve decides to do with them.

From what I can see is, gems tv has very nice facilities, 2 big studios e.c.t, it would be ideal to keep gems tv in one, and have rocks tv in the other (old Gems tv 2 studio).
I think Steve is attached to gems tv, as it was the company he helped create, I hope we can see, rocks Tv and Gems Tv continue under Steve’s management.
It could also be a way for Rocks Tv to get on virgin cable, taking Gems Tv2's x slot.
Many possibilities, I hope Gems Tv can continue and become a successes again, like it used to be.

Phill said:

From what I can see is, gems tv has very nice facilities, 2 big studios e.c.t, it would be ideal to keep gems tv in one, and have rocks tv in the other (old Gems tv 2 studio).
I think Steve is attached to gems tv, as it was the company he helped create, I hope we can see, rocks Tv and Gems Tv continue under Steve’s management.
It could also be a way for Rocks Tv to get on virgin cable, taking Gems Tv2's x slot.
Many possibilities, I hope Gems Tv can continue and become a successes again, like it used to be.

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Not to mention the terrific technology which I'm sure could be invaluable to Steve.

I'm sad about this, having been a customer for a long time, and can now forgive all the shoutyness of the presenters which may well have been a manifestation of desperation if they felt they were trying to save the company. xxxxx

Sadly Argey, I think it's precisely the desperate selling and shouting (along with many other changes such as dodgy new presenter, sirens, awful music, heartbeat sounds, faux jewellery and other tack) that have changed Gems almost beyond recognition and have lead to their downfall.
I'm sure that four telly shopping channels couldn't survive in the current economic climate, but I just feel that many wrong decisions were taken at Gems to go down the road they did and it is, therefore, they who are the first to go under. (Though for the life of me, I cannot understand how Rocks&Co are still managing to survive!)

jacqualina said:

Sadly Argey, I think it's precisely the desperate selling and shouting (along with many other changes such as dodgy new presenter, sirens, awful music, heartbeat sounds, faux jewellery and other tack) that have changed Gems almost beyond recognition and have lead to their downfall.
I'm sure that four telly shopping channels couldn't survive in the current economic climate, but I just feel that many wrong decisions were taken at Gems to go down the road they did and it is, therefore, they who are the first to go under. (Though for the life of me, I cannot understand how Rocks&Co are still managing to survive!)

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Nor me! Funny ole weld in't it?

I agree entirely about all the dodgy decisions, but given that a company of this size doesn't go down overnight, I can't help but wonder if these moves were really the desperate final throes of a dying creature to gasp for breath. :mysmilie_476: xxxxx

I put my hands up, and admit, i have written some scathing postings regarding gems tv, in the past, as they werent quite cutting the mustard; but i wouldnt wish this on any one of them. Its bad news really, at this time, particularly with the financial way of things. I hope Steve Bennett manages to find a way to solve everyones problems, the good news for gems is that at least they are being taken over by someone the know. I hope all goes well for everyone.

I don’t understand Gems Holding Limited,
At first they get rid of Gems tv Germany, then Gems tv China, then Gems tv USA, now Gems tv UK, so are they just going to run Gems tv Japan and that’s it?

Doubt it. Will say Gems Japan has already been sold or will be shortly. Have to keep an eye on the Japanese business news to find out.

Oh i forgot they do have a 37% stake in Jewelry tv USA, so they have that and Japan lol

fingers crossed that SB can work some magic for this channel and bring some sparkle back.

good luck to everyone involved in the venture. will keep fingers crossed that few suffer as a consequence of the changes.

Last night - I flicked over to gems tv between advert breaks, and caught Adina - and she said something that i thought was a bit odd; Adina said in one of her ramblings, that everything she had in that hour, was in the clearance sale, and everything must GO !!! - as gems tv are getting new stocks in!???!

I just thought that bearing in mind what i have read on this posting, SB is contemplating buying gemstv; and here is Adina informing us that Gems tv are selling off all the old stock, as they have new stock coming in!? does this make sense to anyone? Her comment is nothing, short of confusing -(especially when the presenters themselves have not mentioned the current situation) - its as if nothing is happening at gems towers! eerie! lol:flower:

persianglitter said:

Last night - I flicked over to gems tv between advert breaks, and caught Adina - and she said something that i thought was a bit odd; Adina said in one of her ramblings, that everything she had in that hour, was in the clearance sale, and everything must GO !!! - as gems tv are getting new stocks in!???!

I just thought that bearing in mind what i have read on this posting, SB is contemplating buying gemstv; and here is Adina informing us that Gems tv are selling off all the old stock, as they have new stock coming in!? does this make sense to anyone? Her comment is nothing, short of confusing -(especially when the presenters themselves have not mentioned the current situation) - its as if nothing is happening at gems towers! eerie! lol:flower:

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I heard her say that too and must admit i was quite baffled...maybe it was just a slip of the tongue as every other sale they have had the same thing has been said??

Very interesting to see it is going home to Steve who started it all. If he can iron out the problems with Gems it will be a great channel again.
I have stopped buying from them for a considerable time now as my faith in them went.

:flower: