New York, NY – October 21, 2008 SimplexDiam, Inc. today announced purchases of over $50 million at retail in the month of July 2008 alone, signaling a move into a new growth phase of its liquidation division.
According to Chairman & CEO, Yogesh Madhvani, “This marks the first time we have gone public with the magnitude of business we do, but it is appropriate to let our prospective clients know our capabilities. Our asset recovery and services firm’s specialty is the diamond and jewelry industry, and we plan to expand further in this important arena.”
As financial regulators and the markets struggle to contain the ongoing credit and mortgage crisis, Simplex’s niche business has, among other major acquisitions, included the entire residual inventory of Friedman’s Jewelers, Inc (Formerly NYSE:FRM). Said a Vice President at Friedman’s, “I appreciate the input they gave us in evaluating our inventory in 2005 and 2006 …The mix of product was too wide…and even included a 17 carat plus GIA certified diamond. It would have been difficult to accomplish what we did without their help. In particular, their suggestions on how to best segregate the inventory and on how to structure the sale to get the maximum recovery were most useful.”
SimplexDiam also worked on the much publicized bankruptcy of LID Inc. as a “stalking horse” bidder, so named for setting the minimum reserve price on a bankrupt company’s assets.” Chris Ellis, the President of Consensus Advisers LLC & CRO in the LID Bankruptcy noted, “SimplexDiam played a number of significant roles during the valuation phase and eventual auction of the $70 million of LID inventory. Their efforts contributed to a greater than expected recovery from the sale of the inventory. We value SimplexDiam’s input and would readily work again with such an industrious team.”
Simplex’s services and consulting division was selected as the sole buying agent in India for a major publicly traded American retailer. Most recently, they have been consulting with the World Jewelry Center. According to Bill Boyajian, former President of GIA and current Managing Director of the WJC project, “We have been working with SimplexDiam and the Madhvani family for some time, and are impressed with their industry knowledge and ability to work on many different creative projects. They are true pioneers and we regard their contributions highly.”
Yogesh Madhvani has been an entrepreneur for over 33 years, founding and running companies in markets as diverse as textiles and the diamond industry. Among his current operations is a manufacturing business that caters to many fine American jewelry retailers. Madhvani was also a founding director of the Indian Diamond & Colorstone Association (IDCA) and a founding member of the Indo Argyle Diamond Council (IADC). He is a member of many other trade bodies such as the Jewelers Vigilance Committee (JVC), the Jewelers Board of Trade (JBT), and the American Gem Trade Association (AGTA). He is also a donor to numerous charitable organizations.