Online jewelry e-tailer Miadora, based in San Francisco, closed up shop and laid off its staff Friday. A lack of investors prevented the company from continuing.
On Friday, Miadora posted a message on its site notifying customers it had shut down, though later that day the message was replaced with the regular Miadora home page. Speculation held that the company shut down though no official statement was issued. On Monday afternoon, the message saying, "Effective Friday, September 22, 2000, Miadora.com is no longer in business. We appreciate your past support," again replaced the regular Miadora home page.
The lack of investors caused Miadora to close its doors, says Steve Silver, founder and member of a Miadora's board of directors. "It's a very, very hard market right now," he says. "It's difficult to raise money to build a company of this size, and it's very expensive to build." Miadora raised and spent over $51 million since it began, but investors are no longer as interested in funding business to consumer sites. "I expect other luxury sites are having the same trouble finding investors," he says.
The news comes only a few weeks after Miadora was rated as "Best of the Web" in the jewelry category by Forbes magazine. "Miadora was on its way," Silver says. "Its story was compelling, a very loyal customer base was being built and its customer service was consistently rated above 90%. That's what makes this so sad."
The company isn't commenting on the possibility of finding more funding or selling to another company. Silver says remaining customer orders will be fulfilled.
Silver also owns S.H. Silver Co., Menlo Park, CA, an estate and fine jewelry business, which has no connection to Miadora.com.
- by Julia M. Duncan