Trouble in the Jewelry World: Suppliers Left in the Lurch by Shopping Network

In a surprising turn of events, a well-known shopping network, ShopHQ, has left several jewelry suppliers in a tough spot. The network, owned by billionaire Manoj Bhargava, has been accused of not paying for goods sold on its platform.

A Jeweler's Long-Time Partnership Turns Sour

Samuel Behnam, a jeweler from Great Neck, Long Island, has been working with ShopHQ for 25 years. He claims to have made over $150 million in sales through the network but has recently lost $30,000 due to unpaid invoices. Behnam has stopped doing business with ShopHQ as a result.

ShopHQ's Downfall Begins

ShopHQ's troubles began last spring when it started laying off employees and stopping payments to suppliers. The network had been trying to make a push online with video-on-demand and live streams hosted by influencers but failed to gain traction. The effort was described as:

"awkward Instagrams mashed with shopping cart pop-ups"

by one industry blogger.

Suppliers Left in the Lurch

One of the suppliers affected is Morris & David, a New York City jeweler. The company claims to have shipped 500 pieces of jewelry worth nearly $200,000 to ShopHQ's headquarters in Minnesota. Despite this, the jeweler has not received any payment for the goods sold.

The situation has left Morris & David's owner, Yeroshalmi, frustrated. He has been checking the ShopHQ website daily and has noticed that only 14 of his pieces remain. Despite this, he has not been paid for any of the merchandise sold.

Relaunch Fails to Resolve Supplier Issues

ShopHQ was relaunched in October after being transferred from IV Media to the Arena Group, a company that Bhargava controls. However, this has not changed the situation for suppliers like Yeroshalmi, who believe that the owner is simply hiding from them.

Consequences of Unpaid Invoices

The consequences of ShopHQ's actions are far-reaching. Yeroshalmi's business, which has been around for 37 years and has served high-profile clients, is now on the brink of bankruptcy. He owes money to various people for the merchandise that has not been paid for.

Not an Isolated Incident

This is not an isolated incident. Georgia-based beauty wholesaler Y&E Enterprises has also sued IV Media for $51,000 in unpaid fees. IV Media has denied any wrongdoing, according to court filings.

The Rise and Fall of a Shopping Giant

ShopHQ was once a pioneer in TV home shopping, generating $500 million in revenues at its peak. However, the rise of e-commerce has taken a toll on the industry, and ShopHQ now persists mainly on social media and its website.

Despite the network's troubles, some suppliers have had positive experiences. Behnam mentioned that there were late payments and management changes over the years, but it was generally a good business. However, in recent years, suppliers have had to insure their merchandise, adding 5% to 10% to the cost of their jewelry.