Shares of Signet Jewelers stock dropped Thursday amid reports about customer accusations that workers allegedly swapped out diamonds for other gems.
On Thursday, the James Grant investment newsletter said it was bearish on the Akron-headquartered company’s stock but referred to an online Buzzfeed story that appears to have broken the news about the customer allegations, according to Bloomberg News.
The newsletter also raised concerns about the company’s in-house finance operations, Bloomberg reported.
Signet, with corporate offices in Akron, operates Kay Jewelers and Jared the Galleria of Jewelry, among other stores. Last month marked two years since the company’s purchase of rival Zale Corp. of Texas. Signet, which employs an estimated 3,000 people in Summit County, including workers at area stores, calls itself the world’s largest retailer of diamond jewelry.
Signet shares closed at $92.23, down $6.50 or 6.6 percent Thursday. Shares traded as low as $84.80, a 52-week low. The 52-week high is $152.27, reached in late October.
The story on the Buzzfeed website was posted May 25, and details complaints from customer Chrissy Clarius, who said she bought a ring from a Kay Jewelers store in Maryland. Clarius told Buzzfeed she believes the diamond in the ring was swapped out for a cheaper gem during a repair handled by a Kay store. Buzzfeed said via Facebook it had identified seven other women with similar complaints.
David Bouffard, the vice president of corporate affairs at Signet, told Buzzfeed the company handles millions of transactions and repairs every year. He added that one unhappy customer is too many.
Bouffard could not immediately be reached for comment on Thursday.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.