Luxe Designs confirmed this week that they are ceasing operations. Jennifer Lynn Moody, founder and Managing Director of Luxe Designs, made the announcement in a statement sent to their retailers and sales reps that was also posted on her Facebook account:
After several months of thoughtful consideration, we have decided to cease production of any new lines and discontinue order fulfillment. We ceased direct consumer sales on June 30, 2009 and will cease wholesale operations on July 31, 2009. We will begin settling all outstanding commissions on August 15, 2009 and plan to liquidate all remaining Luxe Designs inventory and fixed assets shortly thereafter with a goal of completing such liquidation by September 30, 2009.
Moody expanded on that statement for Scrapbook Update:
The shareholders of Luxe are maintaining ownership if the design catalog but we are selling the inventory assets of the company to an outside party who is in negotiations with a few firms, some of whom have expressed interest in continuing distribution of existing lines. We do not plan to release any further designs for the scrapbook industry, however, under the Luxe Designs brand.
In short, the company remains intact. We are, however, exiting the first-hand distribution of goods and ceasing any design activity within the scrapbook industry.
Many people in the scrapbook industry don’t realize that Luxe Designs is actually a subsidiary of a medical business consulting company. Due to changes in the economy, the company feels it would be best to focus on the consulting side of the business:
The high demand for our strategic services coupled with a drop in demand for consumer goods forced us to examine how we can best operate both of our businesses. In short, we cannot serve either entity well unless it receives 100% of our attention. By serving two companies partially, we are serving neither well. We have decided that our consulting firm yields the best economic and personal returns and will be focusing all of our energy in that direction effective immediately.
Luxe Designs leaves the door open for future licensing or sale of their inventory of product designs, and hints at a possible big announcement coming for the designs’ use in non-scrapbook products in the near future. But beyond that Moody is not revealing plans for the company’s catalog of designs.