Omnimedia's sole asset has become a liability

Investors are worried about the firm's response to Ms Stewart's conviction for lying and obstructing justice.

The company's board reportedly met on Monday to discuss its next move.

Omnimedia sells media and household products endorsed by Ms Stewart, who was meeting probation staff ahead of sentencing.

Sales have already suffered since Ms Stewart's long legal troubles began almost two years ago - and her conviction on Friday saw the stock slump 22%.

Board games

According to media reports, Ms Stewart is likely to step down from the Omnimedia board, or at least not renew her membership after it lapses in May.

Follow the ups and downs of Omnimedia's share price

Last year, she stepped back from day-to-day management of the firm, but retained a seat on the board.

She also owns some 61% of its shares, which have halved in value over the past two years.

Ms Stewart, who has not yet been sentenced, maintains her innocence, and says she is planning to appeal.

But the company is concerned over lasting damage to its sole brand.

Ms Stewart has already stepped down from the board of cosmetics firm Revlon.

Her show has been taken off the air by TV networks CBS and UPN, while the New York Times newspaper said it would replace her two columns with material written by other people.

Fresh start

There is still no clear indication of how Omnimedia will move forward.

There has previously been speculation that it would work with other lifestyle brands, but it so far remains committed to Ms Stewart.

Omnimedia's shares have not collapsed completely, because some analysts say the board may buy out other shareholders and take the firm private.

According to some, the guilty verdict at least removes a layer of uncertainty from the company, allowing it to start with a clean slate.

The company also has no debt, and plenty of cash to sustain ongoing expenses.