8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                           --------------------------


                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


        Date of report (Date of earliest event reported) December 5, 2006
                                                         -----------------




                               ESCALA GROUP, INC.
                               ------------------
               (Exact Name of Registrant as Specified in Charter)

           Delaware                        1-11988                 22-2365834
           --------                        -------                 ----------
(State or other jurisdiction of   (Commission file number)      (I.R.S. employer
incorporation or organization)                               identification no.)

                                623 Fifth Avenue
                            New York, New York 10022
                    (Address of Principal Executive Offices)
                                   (Zip Code)

                                 (212) 421-9400
                                 --------------
              (Registrant's telephone number, including area code)

                     ---------------------------------------
          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
   Act (17 CFR 240.14d-2(b))

[] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
   Act (17 CFR 240.13e-4(c))







Item 5.02 Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers.

         On December 5, 2006, Jose Miguel Herrero resigned as Chief Executive
Officer and President of the Company, and as a member of the Company's Board of
Directors. On that date, Matthew Walsh, age 40 and the Company's Chief Financial
Officer, was appointed President and Acting Chief Executive Officer of the
Company, and as a member of the Board of Directors to fill the seat vacated by
Mr. Herrero. Mr. Walsh will continue to serve as Chief Financial Officer of the
Company.

         Also on December 5, 2006, the Company's Board of Directors appointed
George Lumby and Antonio Arenas to fill the two vacancies on Escala's Board of
Directors, in the class of directors whose term expires at the Board meeting
following the next annual meeting of shareholders.

         Mr. Lumby, age 61, is based in Madrid, Spain. Mr. Lumby served as a
partner at PricewaterhouseCoopers, where he acted as an auditor and a mergers
and acquisitions specialist. After leaving PricewaterhouseCoopers in 2003, Mr.
Lumby established his own firm, which provides consulting services to companies
involved in insolvency and reorganization situations. As part of his duties with
Escala, Mr. Lumby will also serve on the Compensation and Nominating Committees
of the Board.

         Mr. Arenas, age 51, is a managing director and the chief executive
officer of COALCA, S.A., a company involved in the sale and distribution of
consumer and pharmaceutical products, and land development in the Canary Islands
and Spain. Mr. Arenas also has significant experience serving as an independent
advisor with companies pursuing turnaround strategies. Recent projects include
serving as the senior advisor to Papeteries de Gaves, serving as a part-time
managing director of TACISA, and serving as a senior advisor and member of the
board of Exclusivas Roca S.L. Mr. Arenas will also serve on the Compensation and
Nominating Committees of the Board.

         A copy of the press release dated December 6, 2006, announcing the
resignation of Mr. Herrero and the appointments of Messrs. Walsh, Lumby and
Arenas is attached hereto as Exhibit 99.1.

Item 9.01         Financial Statements and Exhibits

                  (c) Exhibits. The following exhibit is attached hereto and
                  this list is intended to constitute the exhibit index.

                         99.1     Press release, dated December 6, 2006








                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


Date: December 7, 2006



                                                        ESCALA GROUP INC.



                                                     By:/s/ Matthew M. Walsh
                                                        -----------------
                                                        Name:  Matthew M. Walsh
                                                        Title: President

EX-99.1

                                                                    Exhibit 99.1

              Escala Group Announces Management and Board Changes

    NEW YORK--(BUSINESS WIRE)--Dec. 6, 2006--Escala Group (Nasdaq:
ESCL) today announced the following executive management changes which
reflect the Company's shift in focus from a worldwide diversification
strategy to its core businesses in stamps, coins, arms and armor, and
precious metals trading.

    Jose Miguel Herrero, who was appointed chief executive officer and
president in September 2005 to develop and pursue the Company's global
acquisition initiatives, will leave Escala effective December 5, 2006,
to pursue other interests that better utilize his international
expertise. Mr. Herrero has also resigned from the Board, effective
December 5. The Board wishes to thank Mr. Herrero for his service to
the Company.

    The Board of Directors has appointed Matthew M. Walsh as president
and acting chief executive officer, and as a member of the Board. Mr.
Walsh will continue his responsibilities as chief financial officer.
Mr. Walsh joined Escala in May 2006 after serving as vice president
and chief financial officer of GenTek Inc., a diversified industrial
manufacturer with whom he had served in strategic and financial
positions of increasing responsibility since 1996. The Company has no
immediate plans to conduct a search for a permanent chief executive
officer or new chief financial officer.

    The Company also announced the appointment of George Lumby and
Antonio Arenas to fill the two vacancies on Escala's Board of
Directors, effective December 5, 2006.

    Mr. Lumby, based in Madrid, Spain, has more than twenty years'
experience in turnaround situations and mergers and acquisitions on an
international level. This experience includes working as a partner at
PricewaterhouseCoopers, where he served as an auditor and a mergers
and acquisitions specialist. After leaving PricewaterhouseCoopers in
2003, Mr. Lumby established his own firm, which provides consulting
services to companies involved in insolvency and reorganization
situations. As part of his duties with Escala, Mr. Lumby will also
serve on the Compensation and Nominating Committees of the Board.

    Mr. Arenas is a managing director and the chief executive officer
of COALCA, S.A., a multi-faceted international conglomerate involved
in the sale and distribution of consumer and pharmaceutical products,
and land development in the Canary Islands and Spain. Mr. Arenas also
has significant experience serving as an independent advisor with
companies pursuing turnaround strategies. Recent projects include
serving as the senior advisor to Papeteries de Gaves, serving as a
part-time managing director of TACISA, and serving as a senior advisor
and member of the board of Exclusivas Roca S.L. Mr. Arenas will also
serve on the Compensation and Nominating Committees of the Board.

    At the board meeting where the two new board members were
appointed, Mr. Lumby commented: "Escala has a lot of untapped
potential, and we are excited to be a part of the Company's future."
Mr. Arenas added, "We are both committed to looking for new ways to
maximize shareholder value with Escala's comprehensive assets in
stamps, coins and art and antiques."

    The Board of Directors has also appointed Carol Meltzer, General
Counsel, as Executive Vice President of Escala Group. Ms. Meltzer has
been associated with Escala Group and its predecessor company, Greg
Manning Auctions, Inc. since 1995, principally as a consultant on
legal and strategic matters.

    About Escala Group, Inc.

    Escala Group is a consolidated global collectibles network. The
Company is a leading auctioneer of stamps, coins, arms, armor and
militaria, and other memorabilia, targeting both collectors and
dealers. Escala is also a merchant/dealer of certain collectibles and
trader of precious metals. The Company's collectibles offerings span
the modest to ultra high-end price spectrum. Escala conducts its
operations in two business segments: collectibles and trading.

    Escala's Group Companies focused on philately are Greg Manning
Auctions, Ivy & Manning Philatelic Auctions, H.R. Harmer, and Nutmeg
Stamp Sales, all of North America; Corinphila Auktionen of Zurich,
Switzerland and the Kohler group of auction companies of Berlin and
Wiesbaden, Germany from our European division; and John Bull Stamp
Auctions, Ltd, the oldest philatelic auction house in Hong Kong in our
Asia division. Escala's Group Companies in its numismatics division
include Teletrade, Bowers and Merena Auctions, North American
Certified Trading, and Spectrum Numismatics International, one of the
largest wholesalers of rare coins in the U.S. Greg Martin Auctions is
in the Company's art and antiques division.

    The trading activities of Escala Group are conducted through
A-Mark Precious Metals, one of the largest private sellers of bullion
coins and bullion gold, silver and platinum to the wholesale
marketplace.

    SAFE HARBOR STATEMENT

    Statements in this press release that relate to future plans,
objectives, expectations, performance, events and the like are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the Securities Exchange
Act of 1934. Future events, risks and uncertainties, individually or
in the aggregate, could cause actual results to differ materially from
those expressed or implied in these statements. Factors that may cause
such differences include changes in market conditions, changes in
economic environment, competitive factors and the other factors
discussed in the "forward-looking information" or "risk factors"
sections included in Escala Group's filings with the Securities and
Exchange Commission, including Escala Group's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, prospectuses and other documents
that Escala Group has filed with the Commission. In particular, any
statement related to Escala Group's expected revenues or earnings or
Escala Group's being well positioned for future profitability and
growth are forward-looking statements.

    In addition, the Company faces substantial uncertainty as a result
of recent events surrounding Afinsa. In particular, readers should
note the following: (1) Since May 9, 2006, Afinsa and certain of its
executives have been the subject of a criminal investigation in Spain.
While the Company has not been notified that neither it nor any of its
current directors, officers or employees is a target of this inquiry,
there can be no assurance that the Company or such persons will not be
named in the future. (2) In addition to the Audit Committee inquiry,
on or about June 5, 2006, the Company received notification of a
formal order of investigation from the SEC. Although the order is not
confined to a particular subject matter, the Company believes that the
matters being investigated relate primarily to Company's transactions
with Afinsa. The SEC inquiry is continuing, and the outcome cannot be
determined at this time. (3) Afinsa is currently involved in
insolvency proceedings before a commercial court in Madrid. The court
has appointed three trustees to oversee the operations of Afinsa. The
effect of this action on the Company, approximately 67% of whose stock
is owned collectively by Afinsa and its wholly owned subsidiary,
Auctentia, S.L., cannot be determined at this time. (4) Central de
Compras Coleccionables S.L., the Company's Spanish subsidiary, is the
subject of separate customs and tax inspections in Spain. The outcome
of these proceedings cannot be determined at this time. (5) As a
result of the events of May 9, 2006, Escala and certain of its
officers and directors have been named in eight putative class action
lawsuits (now consolidated) and two derivative lawsuits (now
consolidated) relating to the Company's affiliation and dealings with
Afinsa. The outcome of these lawsuits cannot be determined at this
time. (6) The Company is expected to incur significant expenses in
connection with the SEC and Audit Committee inquiries and the class
actions and derivative lawsuits. (7) The Company faces substantial
business and financial risks and uncertainties as a result of the loss
of Afinsa as its major customer. (8) As a result of the failure to
file its 10-K for the year ended June 30, 2006 and its 10-Q for the
quarter ended September 30, 2006, the Company is not in compliance
with the continued listing requirements of the Nasdaq Stock Market and
has received delisting determination letters from Nasdaq. A hearing
was held before the Nasdaq Hearing Panel on November 16, 2006, at
which time the Company requested a conditional extension to remain
listed on the Nasdaq Stock Market. There can be no assurance that the
Panel will grant the Company's request for an extension or, if an
extension is granted by the Panel, that the Company will be able to
file its requisite reports by such date. If the Company is not granted
an extension of time to file its reports, or fails to file its reports
prior to any additional deadline, the Company's securities would be
subject to delisting.

    The words "should," "believe," "estimate," "expect," "intend,"
"anticipate," "foresee," "plan" and similar expressions and variations
thereof identify certain of such forward- looking statements, which
speak only as of the dates on which they were made. Additionally, any
statements related to future improved performance and estimates of
revenues and earnings per share are forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements.

    (ESCL)

    CONTACT: Escala Group
             Perry Hall, 212-421-9400
             Senior Vice President, Corporate & Brand Communications
             phall@escalgroup.com