Moissanite seller Charles & Colvard Ltd. this week said it has sold off the main assets of its direct selling unit, Lulu Avenue, to Yanbal USA Inc.
Yanbal USA is part of Yanbal International, a direct selling enterprise with nearly 500,000 beauty consultants in 10 markets across Latin America and Europe. Based in Lima, Peru, the company came in at No. 20 on the 2015 DSN Global 100 with annual revenue of $856 million.
Now Yanbal is setting its sights on the U.S., and the deal with Charles & Colvard brings the company one step closer. The purchase includes a $250,000 credit in existing jewelry inventory, marketing collateral, and intellectual property related to Lulu Avenue’s home party sales model, as well as exclusive licensing on that property through July 31, 2016. Yanbal paid the jewelry company $500,000 for the assets.
Charles & Colvard is a manufacturer and global distributor of created moissanite, as well as finished jewelry featuring the gemstones. The company was the first to duplicate moissanite, a clear jewel with brilliance rivaling a diamond’s—and a lower price tag. Management said the company is divesting its Lulu Avenue business to focus on selling its gemstones to wholesalers and directly to consumers through its e-commerce website.
“This agreement allows Charles & Colvard to focus its resources and efforts on its core moissanite business,” Suzanne Miglucci, President and CEO of Charles & Colvard, said in a statement. “We believe Yanbal USA will be a great partner for our loyal and committed Lulu Avenue style advisors, and we wish them great success.”
Miglucci has led the company since December 2015, when former President and CEO Marvin Beasley retired. She formerly served as chief marketing officer at e-commerce software and services firm ChannelAdvisor.
Charles & Colvard reported a fourth-quarter loss of $1.9 million, or 9 cents a share, compared with a loss of $2.8 million, or 14 cents a share, during the same period in 2014. Lulu Avenue accounted for 12 percent of the company’s $8.4 million in quarterly sales. For the full year, Charles & Colvard lost $9.6 million, or 47 cents a share, compared with a loss of $13.1 million, or 65 cents a share, in the prior year.