Diamonds Are Simplex Diam Company’s Best Friend

Simplexdiam Inc. Will Auction over $1,000,000 Of Diamonds, at Wholesale Cost, from the Fortunoff Court Ordered Bankruptcy

By Jacqueline Palank found at blogs.wsj.com

Square-cut or pear-shaped – it doesn’t matter to SimplexDiam Inc. The company that’s reaped the bounty of the wave of jeweler bankruptcies, buying up millions of dollars in leftover inventory from defunct chains like Friedman’s and Whitehall Jewlers, has discovered a new way to profit from today’s bankruptcy boom – become an auctioneer.

This week, the Manhattan company announced that it’s been chosen to run an auction of more than $1 million worth of inventory – including loose diamonds – leftover from Fortunoff Holdings LLC’s bankruptcy liquidation. Fortunoff, once an upscale East Coast retailer, is currently awaiting the Manhattan bankruptcy court’s permission to hire SimplexDiam. Court papers show the company has guaranteed Fortunoff at least 46% of the merchandise’s value, currently pegged at $1.05 million.

SimplexDiam, based in Manhattan, said in a statement that its job of liquidating “7 figures in closeout diamonds” is “the next logical step” in light of its recent bankruptcy-related deals. In May 2008, SimplexDiam was part of a joint venture that set a $16.25 million floor price at an auction of the loose diamonds and finished jewelry of diamond wholesaler LID Ltd., driving up a the winning bidder’s offer to nearly $33 million. Then in July, SimplexDiam bought up residual inventory from Friedman’s. And this January, the company acquired $15 million in jewelry from Whitehall Jewelers’ bankruptcy estate.

SimplexDiam was founded in 1983 to make jewelry for retailers, according to the company’s Web site. The company now focuses on buying up jewelry that those retailers aren’t able to sell or, as it has recently found, must get rid of in a bankruptcy liquidation.

Simplexdiam Inc. Will Auction over $1,000,000 Of Diamonds, at Wholesale Cost, from the Fortunoff Court Ordered Bankruptcy

New York, NY (PRWEB) May 19, 2009 -- SimplexDiam Inc. announced today that it would liquidate 7 figures in closeout diamonds for the Bankruptcy estate of Fortunoff Holdings, LLC. & Fortunoff Cards, LLC. This is the logical next step for a company that has won almost every major retail bankruptcy residual in the past 12 months.

In a coup for the estate, Simplex has offered both a minimum guarantee recovery and a commitment of all of its resources to making this auction a success. They've designated a part of their Las Vegas presence to aggressively promote the auction. Says VP of marketing, Neel Madhvani: "the Fortunoff auction will be prominent in all of our marketing. In fact, it will have a significant allocation in the 20,000 fliers JCK hands out to every one of the buyers in attendance."

Interestingly, this will be the first time ever that a specialized asset recovery company will be running a loose diamond auction. Having purchased and sold well over 200,000 carats of closeout diamonds in the last 12 months, SimplexDiam Inc. has more experience by far than their next closest competitor in the field.

Chairman and CEO, Yogesh Madhvani says, "The entire team is excited to be a part of this. This is the first time ever that a wholesale bankruptcy auction is tied to aggressive marketing. We expect far more applications for viewing than we have spots available. Within the first day of signing we spoke to 25 potential buyers who showed considerable interest."

This auction will be run with complete transparency. The team has setup an online account with a public provider that is accessible by cleared staff from Fortunoff, it's advisors, and Simplex. All bids will be sent directly to this account by email or electronic fax and forwarded in real-time to all approved parties. All bidders will bid blind to other bids and bidders' names will not be disclosed. As opposed to a public auction, this format prevents any physical or electronic contact that could disclose who is bidding on the merchandise. This event could transform the way industry auctions are run.

Yogesh Madhvani has been an entrepreneur for over 33 years, founding and running companies in markets as diverse as textiles and diamonds. Madhvani is a founding director and currently Vice President of the Indian Diamond & Colorstone Association (IDCA) and a founding member of the Indo Argyle Diamond Council (IADC). SimplexDiam Inc. is a member of multiple trade bodies including the Jewelers Vigilance Committee (JVC), the Jewelers Board of Trade (JBT), the American Gem Trade Association (AGTA), The Continental Buying Group (CBG), Jewelers of America (JA), Southern Jewelry Travelers Association (SJTA), Manufacturing Jewelers & Suppliers of America (MJSA), and most recently, The Retail Jewelers Organization (RJO). The family supports many charitable organizations.

For information on this press release and to inquire about the auction please email: Fortunoff@simplexdiam.com. (Please note that your inquiries will be forwarded immediately and automatically to SimplexDiam Inc. and to representatives for the Fortunoff estate.)

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