Silpada Designs Confirms Plans to Close at End of July
May 26, 2016 Leave a comment
Jewelry and accessories maker Silpada Designs will close its doors at the end of July, company officials confirmed Wednesday.
The team at Lenexa, Kansas-based Silpada has sought to breathe new life into the brand since it parted ways with Avon Products nearly three years ago. The beauty company bought Silpada in 2010, looking to grow its North American sales. Avon paid $650 million for the family-owned business and kept the founders and management team in place.
In July 2013, amid heavy cost cuts at Avon, Silpada co-founders Jerry and Bonnie Kelly and Tom and Teresa Walsh, along with their respective daughters, Ryane Delka and Kelsey Perry, formed Rhinestone Holdings Inc. to buy back Silpada for $85 million. Delka and Perry were then appointed Co-Presidents, and later became Co-CEOs of the company.
According to Vice President of Marketing and Product Development, Andrea Carroll, Silpada has seen declines in sales and recruiting since 2010, when it joined forces with Avon. At the time, revenue had grown to $230 million annually.
Under the leadership of Delka and Perry, Silpada has ventured beyond its trademark collection of sterling silver jewelry. In 2014, it introduced the KR Collection, an updated jewelry line featuring brass, leather and Swarovski crystals in fashion-forward designs. Then, last year, an accessories line launched with a variety of handbags, scarves and travel goods.
However, fresh offerings and additional investments in the company were not enough to reverse negative trends, management said in a link made available to Silpada Representatives.
“One of the things we’ve seen since reacquiring the company is how different the party environment is from when Silpada started in 1997, particularly in two areas that drive sustained growth at a direct selling company,” Carroll told DSN. “We’re not seeing as many recruits come in as we have in past years, and women aren’t hosting traditional parties as much.”
The decision to shutter the company was relayed to Representatives in a Tuesday conference call with Silpada’s board of directors. The plan is to continue business as usual through July 31, the last day Representatives will be able to submit orders and receive commissions. At that point, Silpada will begin liquidating inventory and shutting down operations, with the goal of completing the process by Dec. 30.