Lugano Diamonds & Jewelry has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, seeking a buyer after allegations against its founder, Mordechai “Moti” Ferder, of fraudulent diamond sales. The company aims to sell “substantially all of its assets” while securing $12m in debtor-in-possession financing to maintain operations. Interim chief executive Josh Gaynor expressed gratitude for the support from employees and clients, commenting: “As this process is underway . . . we look forward to continuing to provide our valued clients with unique, timeless pieces.” Lugano’s financial troubles stem from lawsuits alleging Ferder misrepresented the company’s finances, with liabilities estimated between $500m and $1bn.
Lugano Diamonds files for bankruptcy
45 responses to “Lugano Diamonds files for bankruptcy”
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