It has been announced today that Lia Sophia will be shutting down. The challenging business environment is the stated reason for shutting down. The company website is still active at this time.

“We are extremely grateful to our customers and employees for their loyalty and support throughout these 28 wonderful years, but it is with a heavy heart that we must announce that the #LiaSophia era has come to a close.” – Source Lia Sophia Facebook

“Given the challenging business environment, we made the painful decision to wind down Lia Sophia in the United States and Canada by December 31, and cease operations by the end of February.” – Source

Lia Sophia is a family owned business that was founded by Victor Kiam under the name Lady Remington several decades ago. It is currently run by Elena and Tory Kiam.

Here is how the the company is described on their website.

Lia Sophia jewelry is special, but it’s just the beginning of a remarkable experience. We’re a sisterhood of women combining style with personal success. As a brand, we stand behind our beautifully designed jewelry with the strongest guarantee in the business, and we support our Advisors with the finest programs. But lia sophia has known for more than 40 years that it takes the best …to be the best.

Income Disclosure

As an Advisor, you’ll earn profit of 30% of your sales. With an average $650 party, you’ll earn $195.

The average annual income for all Advisors and Leaders in 2013 was $3,330 per year.

Here is how the business opportunity was presented.

Lia Sophia Possibilities Video

Here is a complaint that was filed about the company.  The warning in the complaint has come true today.

Lia Sophia is a MLM scheme. The gov’t should do something about these pyramid schemes. The jewelry is nothing but bling. Worst of all, you have to BUY the jewelry to make money. The trips you win depend how much you sell: trip for one or two. Say you won a trip for one and want to take your husband. You have to spend your money (or your husband’s money) to buy the extra ticket! How is that making money? You’re only making the people who OWN the company rich, really rich! Jewelry isn’t replenishable. There’s only so much jewelry you can buy. And if you don’t know that honey, you have one BIG SPENDING PROBLEM! You have to be really desperate and up to your neck in bills to even THINK you’ll get rich! The parties are BORING. Oh wow, playing parlor games! It’s like school dress up parties and the clicks you used to have at school. Oh, what fun! HO-Hum. Girls, be careful your pyramid doesn’t come crashing down! – Source