The largest online diamond jewelry retailer in Great Britain explores for the first time the sale of participation in the company in external investors in 69 years.
Sky News has learned that Diamond Store, which belongs to its founding family, works with advisers on a process to call on new donors in the middle of the growing appetite among consumers for diamonds cultivated in the laboratory.
Sources close to the process indicated that talks were already active with a large number of potential investors.
Cavendish, the investment bank, oversees discussions with potential donors.
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The Diamond Store sells jewelry incorporating natural and cultivated diamonds in the laboratory, with a report by the Bain & Company consulting company claiming that their sales increased by around 40% in 2022, due to the increase in consumer demand, better production efficiency and broader adoption.
The identities of the interested parties were not clear.
“We note a vast and growing appetite for laboratory diamonds across Europe, especially in the markets where awareness is increasing, but the choice remains limited,” said Jeremy Kanzen, Director General of the Diamond store.
“We actively explore strategic partnerships to help accelerate our international expansion and meet this demand.
“The selective physical presence, both in the United Kingdom and in key European cities, thanks to high-end concessions and pop-ups, will play an essential role in strengthening the brand’s visibility, confidence and conversion conversion.”
“Global sales of laboratory diamonds are now representing almost 20% of the global diamond market, this figure is expected to increase considerably over the next five years,” added Kanzen.
“Consumers, in particular younger public, quickly move away from retail models inherited in favor of brands which offer ethical innovation, transparency and flawless online experiences.”
The company employs around 70 people and is based in London, having been founded in Hatton Garden, the heart of the capital’s jewelry industry.
Revenues from the Diamond store increases at a two -digit rate, with the potential of its profits before interest, taxes, depreciation and amortization (EBITDA) to double in the next three years with a new partner, said Kanzen.
His discussions with investors occur two years after Vashi, a diamond jewelry retailer founded by Vashi Dominguez, collapsed in liquidation, leaving a trace of donors with losses of several million pounds.
Mr. Dominguez faced allegations of his donors according to which the company operated fraudulently, the founder would have asked the staff to present themselves as customers.