Lugano Diamonds Acquired by Middle West Partners

Lugano Diamonds, the high-end jeweler recognized for customized items beginning at $50,000, has been acquired by funding agency Center West Companions, with a number of longtime shoppers becoming a member of the deal as buyers. The transaction, which closed September 30, follows a yr of monetary turmoil and restructuring after the corporate filed for Chapter 11 chapter in November 2025. Josh Gaynor, who had been serving as interim CEO, will now lead the corporate as its everlasting chief and can sit down on the board. Earlier than becoming a member of Lugano, Gaynor labored in senior positions at Bottega Veneta and Fendi, and headed Bulgari North America’s excessive jewellery division.

Center West Companions, which can also be recognized for its 2025 buy of heritage jeweler David Webb, accomplished the acquisition with assist from Boston-based Gordon Brothers. The corporate introduced that Lugano’s 4 boutiques, in Newport Seaside, Aspen, Ocala, and Miami, will stay open, and its Newport Seaside headquarters and jewellery workshop will proceed operations. Lugano had expanded to 10 shops by 2025, however six areas closed in the course of the chapter course of.

Based in 2004 by Mordechai (Moti) Ferder and his spouse, Edit, Lugano constructed its popularity on creating one-of-a-kind jewellery for ultra-wealthy shoppers. By 2021, the corporate had attracted the eye of Compass Diversified (CODI), which acquired a majority stake for $103.7 million, valuing Lugano at over $250 million. Ferder remained as CEO after the acquisition, and the corporate’s gross sales reportedly quadrupled within the following three years.

Nevertheless, in 2025, CODI disclosed “irregularities” in Lugano’s monetary data and said that its funds “ought to now not be relied upon.” Ferder resigned and left america, with courtroom papers indicating he’s now in Tel Aviv. CODI filed swimsuit in federal courtroom, accusing Ferder of orchestrating fraudulent facet offers involving non-existent diamonds and misusing firm funds. The Securities and Trade Fee additionally filed expenses towards Ferder, alleging solid data and greater than $1 billion in fictitious income. Ferder has denied all allegations by his lawyer, who known as CODI’s lawsuit “a transparent effort to misdirect accountability for the corporate’s motion, efficiency, and supreme failure, which occurred after Mr. Ferder’s departure from management.”

Regardless of the turmoil, Gaynor credited the 75-person crew and dependable shoppers for holding the corporate afloat. In a current assertion, he wrote, “The previous yr and a half examined our crew in methods none of us might have imagined. A lot of it performed out in public.” He famous that some shoppers have grow to be half homeowners within the enterprise, a transfer he described as a big present of assist.

The interval main as much as the acquisition was marked by a collection of fast adjustments for Lugano. In June, Compass Diversified introduced it will liquidate its belongings, and the corporate’s holdings had been offered to Enhanced Retail Funding, a division of Gordon Brothers. Gordon Brothers then supported Center West Companions within the buy of Lugano, because it had carried out beforehand with David Webb. Each Center West Companions and Gordon Brothers are primarily based in Boston, and their involvement was key in securing the jeweler’s future.

Lugano’s boutiques, which had as soon as numbered ten, are actually centered on 4 areas. The Newport Seaside flagship stays the middle of operations, housing each the corporate’s headquarters and its jewellery workshop. The corporate’s employees, numbering 75, continued to serve shoppers and keep operations in the course of the chapter and transition. Gaynor has stated that the loyalty of shoppers, a few of whom invested within the new possession, was important to the corporate’s survival.

Kevin Kelleher, co-founder of Center West Companions, stated that Lugano has constructed its place within the luxurious jewellery sector by robust relationships with its clientele. Gaynor said that it’s too early to debate future plans for the corporate. All 4 boutiques and the Newport Seaside workshop will stay open below the brand new possession.

The journal has additionally checked out the expansion plans of other luxury jewelry buyers.