Charles & Colvard Ltd. has sold its Lulu Avenue direct-selling business operation to Yanbal USA Inc. for $500,000.
Charles & Colvard is best known as the source of moissanite, a mineral used in jewelry as an alternative to diamonds.
The sale of the Lulu Avenue assets included a credit to Yanbal for the purchase of $250,000 in existing jewelry inventory, related intellectual property connected with the business operation of a “home party” jewelry model in the U.S., as well as an exclusive license through July 31, 2016 to use the Lulu Avenue IP. The agreement was signed on Friday.
Charles & Colvard said in February as part of a strategic decision that it would consider divesting its Lulu Avenue direct-to-consumer home party business so it could focus on its core moissanite business.
Charles & Colvard said it is the world’s only source of Forever Classic, Forever Brilliant and Forever One moissanite gemstones. The stones are available in three color grades and created from silicon carbide crystals for fine jewelry. Distributors are in the wholesale and retail channels, TV shopping networks and designers who purchase loose stones. The company also sells direct to consumers through its operating subsidiary Moissanite.com LLC.
Yanbal is part of Yanbal International Enterprises, with a background in the beauty industry. It has a presence in 10 countries of Latin America and Europe, and has nearly a half a million beauty consultants. It purchased the Lulu Avenue operation as part of a strategy to enter the U.S. direct selling business.
The mineral moissanite was discovered by Henri Moissan in the early 1890s, but wasn’t introduced to consumers in the jewelry market until the late 1990s.