The
AGL Brand will live on—this time under the leadership of Chris Smith.
A group photo, from left to right – Bilal Mahmood,
Sun Joo Chung, Maria Frances, Chris Smith, Elizabeth Quinn-Darenius.
When publicly-traded Collectors Universe, which bought American
Gemological Laboratories for $3.5 million in 2006, suddenly shut down the lab
on Monday, March 2nd, many in the trade worried about the fate of what is arguably
the world’s best-known brand in colored stone certification. Worry no more.
The AGL brand is in good but once again private hands and is about to be re-launched.
Colored Stone’s Editor-in-Chief interviewed Chris Smith, AGL’s
new owner, to get the inside story on the brand buyback and an indication of the
lab’s future direction under his ownership. Here are some highlights:
C.S.: March 2nd, 2009 still seems like a day
that will live in gemological infamy. I am told Michael Haynes, former CEO of
Collectors Universe, visited in the afternoon to tell you AGL would be closing
its doors effective immediately. Did you have knowledge that this was coming?
CHRIS SMITH: I had received a phone call on that Sunday evening from Michael
indicating he wanted to talk to me on Monday, but I had no idea what he wanted
to discuss. Needless to say, it had not occurred to me that he was coming in to
close the lab. The ironic thing is that we had just come off a very good Tucson
Show. We unveiled our newly designed Prestige reports and we released new findings
on our research to detect natural-color tanzanite. These were well received and
our prospects looked bright, with submittals up in the weeks following Tucson.
C.S.: When
CU made the announcement that it was exiting its gem and jewelry businesses, this
news had consequences for both their colored stone lab (AGL) and their diamond
lab (GCAL). However Don Palmieri was able to announce the next day that he had
re-acquired GCAL, so it was never closed. When no such announcement came from
AGL, everyone assumed that similar negotiations had failed between CU and AGL’s
former owner, Cap Beesley. What made you start negotiations on your own with CU?
SMITH: I was informed that both Don and Cap had learned
of CU’s plans on February 5th, during the Tucson show. CU had entered discussions
with both at that time to re-acquire the labs. Although Don was able to work out
an agreement, Cap and CU could not come to acceptable terms. It was then Cap first
suggested to CU that they enter into discussions with me to see if I would be
interested. During that first week after CU closed AGL, they offered me the opportunity
to acquire AGL. After careful consideration, I became convinced that AGL was an
enterprise and brand which the industry and consumers had come to rely upon and
that its continued existence was important to secure.
C.S.: Okay,
what did you see in the company that made it worthwhile for you to start negotiations
with CU?
SMITH: AGL is an iconic brand in the U.S., one that is
synonymous with high-quality reporting. Immediately after its closing, there was
a tremendous outpouring of shock, consternation and support for the lab. I was
concerned about the impact of our disappearance on dealers who had long been buying
and selling gems based on the reliability of an AGL report. I firmly believe that
the industry and consumers need a colored stone lab that they can have confidence
in and AGL represents that.
C.S.: This
industry is not known for exhibiting calm under stress. When news broke of the
same-day closing of the lab, dealers who had left stones with AGL must have panicked.
I think that’s why everyone was a little miffed at CU.
SMITH: My number one priority was to assure the return
of goods left with AGL for testing, study and research to their owners. In addition
to me, a couple of staff members (Maria Frances and Sun Joo Chung) were retained
to help facilitate a quick, orderly return of goods. It took a little time, but
we calmed nerves and restored confidence in the lab.
C.S.: Did
AGL’s grace under fire and the industry’s sigh of relief set the stage
for negotiations with CU?
SMITH: During the week of March 2nd, while we were making
an inventory of client stones and AGL property, CU first broached the option of
acquiring AGL. By late March, we had reached terms acceptable to both parties.
C.S.: Can
you divulge any of those terms?
SMITH: Not just yet. We’re still reviewing the fine print. All I
can say is that I have entered into an agreement with CU to acquire AGL.
C.S.: With
you as owner, I take it the first change at the new AGL will be your elevation
from vice president to president. That puts the future of the AGL brand on your
shoulders. What are your plans?
SMITH: My first order of business is to start issuing
reports. The best way I can think of to send a clear message that AGL is back
in business is to get back to the business for which the lab is known. Fortunately,
we were fully functional right at the time AGL’s doors were closed. So there’s
been a relatively smooth transition to re-launch.
C.S.: Who
is the new AGL team comprised of?
SMITH: Now that AGL has become a private venture again, it is not possible
to retain all of the previous AGL staff. In addition to me, we have Elizabeth
Quinn-Darenius, who is an outstanding gemologist with a bachelor’s degree
in science and more than 12 years of laboratory experience. She has worked with
such notable gemologists as Shane McClure, John Koivula, Frank Notari and Thomas
Hainschwang to name a few and has been an AGL staff member for the past 2 years.
Maria Frances has 16 years of experience managing a laboratory’s inventory
control, client relations and mail room, as well as general team and workflow
oversight. Sun Joo Chung has 5 years of experience with AGL as an administrative
assistant, report processing, workflow coordinator and client relations. Bilal
Mahmood is our imaging production specialist. And lastly, Helene Smith has grown
up in the jewelry industry and is our executive administrator. This team of highly-qualified
professionals is already familiar to the clients of AGL. They will ensure a seamless
transition as well as continuation of the high-quality reporting that AGL clients
have come to expect.
C.S.: Will
you continue the programs started by CU or will you add new ones?
SMITH: AGL had a very successful line of services, whether ID, enhancement,
origin or grading reports for high value stones with our Prestige program, our
Platinum level reports for very exclusive items, or the FastTrack program of GemBriefs
for those smaller or lower cost items. There are no immediate plans to change
or discontinue any of these programs.
C.S.: While
under CU’s ownership, AGL became a model corporate citizen, earning a new
reputation for cooperation and joint research with the trade. Will you still be
as much of a team player now that you are privately held once again?
SMITH: While I was with AGL over the past 2 years, I worked diligently
with the industry on a number of high-profile topics. These have included, most
recently, clear nomenclature to distinguish lead-glass filled rubies (i.e. Composite
Ruby), the cobalt coating of tanzanite and several issues related to the Burmese
ruby ban in the US. No single entity can possibly be everything to everyone; however,
under my leadership the industry can expect that AGL will remain willing to contribute
help to solving high-impact gemological challenges as they arise.
C.S.: Okay,
here comes the hardest question I have to ask. For many, AGL and its founder Cap
Beesley are inseparable. What are your feelings about Cap no longer being involved
with AGL?
SMITH: The AGL has been virtually synonymous with its founder Cap Beesley
for 30 years. Cap is a highly respected and knowledgeable gemologist who has been
instrumental in pioneering gemstone grading, origin determinations in the US and
clear disclosure of gemstone treatments. I have great respect for his abilities
and achievements. But AGL has laurels apart from those of Cap’s and it is
on those that we must make a future. My own 20+ years of experience as a laboratory
gemologist, including stints as head of the Gübelin laboratory in Switzerland,
Director of GIA lab’s East coast gem identification services and as vice
president & chief gemologist of AGL, may have made me almost as familiar to
some of you. It is with this background and the very capable team of previous
AGL employees that I feel confident we will be able to maintain the high-quality
of service that AGL’s clients have come to expect. Some may feel that AGL
cannot be the same without Cap and this statement is certainly true. However,
a lab is the sum total of its staff and expertise. The new AGL is fully able and
firmly committed to continuing the tradition of excellence that AGL established.
So despite challenging economic times, I believe AGL has a bright future both
in terms of service and leadership.
A sample report from AGL
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