Diamond.Com Buys Out Ashford

“Ashford.com has performed below our expectations,” commented Michael Rubin, Chairman and CEO of GSI Commerce. The asset purchase agreement, which does not include Ashford’s liabilities, will be finalized on December 27. According to Rubin, GSI Commerce intends to sell the online retailers’ remaining inventory and close Ashford’s 80-person Houston facility, as well as phasing out Ashford’s corporate gifts business.

“The strong brand heritage and loyal customers of Ashford are an excellent match with our luxury goods infrastructure,” stressed Alan Lipton, President and CEO of Diamond.com. “Ashford will operate apart from the Diamond.com website,” Lipton reported.

Ashford is yet another victim of the e-commerce plague, suffering total losses since its inception in 1999 of over $240 million. According to Lipton, Diamond.com is optimally positioned to get the e-commerce jeweler into the black, stating that Diamond.com already has the infrastructure in place to operate Ashford, and won’t have to take on the site’s Houston facility.

Diamond.com, an Odimo company, is majority owned by The Steinmetz Group and Softbank Capital partners L.P.