You may have heard about the recent accusations of gem-swapping at Kay Jewelers. Customers accused the chain of switching out the diamonds in their jewelry for lower-grade diamonds or human-made stones that aren’t diamonds. The news stories launched more accusations on social media, and far too many “Every [blank] begins with Kay” jokes. Now the CEO of Kay’s parent company is speaking out, and holding promotions to get sales up.

Sure, some of those were planned promotions that were meant to get customers inside the door, but CEO Mark Light told Bloomberg News that what the company wants is to “stimulate and excite the customers more,” but didn’t detail what that might involve.

After an influential investment newsletter brought up the stone switcharoo accusations as well as the potential for problems with the company’s consumer credit business, its stock price has plummeted. That’s why the company needs to get sales up, and quickly.

Mr. Light says that the reports of impending doom came from short-sellers: investors who bet that the company’s stock price would fall. However, the company is considering outsourcing its credit operations to an outside company, and is re-evaluating the process that it uses to verify the identity of a gemstone before giving it back to a customer after a repair.

Kay Jewelers Owner Steps Up Promotions Amid Gem-Swapping Scandal [Bloomberg News]

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