Thursday, July 2, 2009

Fortunoff Estate Miraculously Recovers Over 73% on Small Diamonds at SimplexDiam Auction

SimplexDiam Inc. announced today that their auction of the Fortunoff loose diamonds recovered over 73% on cost. 73% recovery on retailer's cost at a wholesale auction is all but unheard of. Simplex reports over 30% better result than best comparable diamond auction.

New York, NY (PRWEB) July 1, 2009 -- SimplexDiam Inc. announced today a 73% recovery on Fortunoff's loose diamonds. Said CEO Yogesh Madhvani, "We knew we'd attain a tangibly better recovery than the competition, that's why we took the project. One has to remember that this isn't a going-out-of-business sale, it's an auction to the trade. These aren't certified stones, they're 70 pointers down. Both the bidders and the estate seem quite happy with the result."

Madhvani and his team are in fact no strangers to record breaking auctions. In May of 2008 he and his team were a hair's breadth away from winning $17,000,000 of diamonds, at auction, of the LID diamond inventory, only to lose it in the combined bidding. Consensus Advisor's Chris Ellis has credited them with being integral to the auction's process and success.

Simplex Closeout Jewelry Affiliations
Simplex Closeout Jewelry Affiliations

Returning to Fortunoff, let's put the achievement in perspective: Recent wholesale auctions have recovered between 35% and 55% of wholesale cost. Retailers usually pay 20% markup on loose diamonds under 70 points. In other words, retailers own the loose diamonds at 120 cents on the wholesale dollar. Doing the math, this means that Simplex recovered 87.6% (73% of 120 cents) on wholesale cost as opposed to the 35%-55% one normally sees. We can't find a trade auction in recent recorded history that's even within 25 points of this number.

Says VP of Finance, Shail Madhvani: "This is a high watermark. Still, I must say we have faith in our math. We've been meticulous about keeping data over the years and using it to improve results. It's this data that has made it possible to build lots that will be most attractive to potential bidders. Intelligent selection, based on multiple variables, allows us to maximize value for the bidder and the estate. It has taken us decades to understand the secondary market this well. We still work hard each time to improve our models."

SimplexDiam Inc. values and purchases diamonds and fine jewelry. They have functioned as a stalking horse (reserve bidder) in the LID Deal, guaranteeing, in partnership, over $20,000,000. They served as a bidder and winner of the Friedman's, Whitehall, Colibri, and Christian Bernard residual jewelry inventories. Most recently they performed as an auctioneer of loose diamonds for the Fortunoff Estate in bankruptcy. They are also winners at many major retailers' quarterly jewelry auctions and provide services to small jewelry retailers and pawn shops by valuing and purchasing closeout diamonds and jewelry they acquire from individuals and diamond traders. Additionally, their going-out-of-business division is familiar with bankruptcies and going-out-of-business sales across the country.

Yogesh Madhvani has been an entrepreneur for over 33 years, founding and running companies in diverse markets. He 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). They will be displaying wholesale closeout jewelry at their first RJO show in August of this year. Other shows they attend are: JCK Las Vegas, JCK Toronto, JA New York, SJTA Atlanta, JIS Miami, GJX Tucson, and In Store Chicago. The family also supports many charitable organizations.

For more information about SimplexDiam Inc., please email Neel Madhvani at sales (at) simplexdiam (dot) com.

See Also:

[Via Legal / Law]

No comments: