The Diamond Retailer seeks buyers as lab-grown demand rises
The Diamond Retailer, the UK’s largest specialist on-line diamond jewelry retailer, is reportedly exploring a stake sale to exterior buyers for the primary time in its 69-year historical past, based on Sky Information.
The outlet has learnt that the London-based enterprise, owned by its founding household, has appointed Cavendish to run the method and is known to be in talks with a lot of potential backers.
The transfer comes as demand for lab-grown diamonds continues to climb, with Bain and Firm reporting a 40% enhance in world gross sales in 2022.
The Diamond Retailer, which employs round 70 folks, is reporting double-digit income progress, with EBITDA projected to double inside three years with the assist of a brand new investor, based on Kanzen.
The talks come two years after rival jeweller Vashi collapsed, leaving buyers with heavy losses and going through allegations of misconduct.
Jeremy Kanzen, CEO and co founding father of The Diamond Retailer, instructed Retail Sector: “At The Diamond Retailer, we’ve seen a marked rise in demand for lab-grown diamonds, reflecting a broader shift in how at the moment’s clients have interaction with fantastic jewelry. Persons are more and more searching for stunning, significant items that align with their values, notably round sustainability and worth for cash.
“We provide each pure and lab-grown diamonds, and importantly, we don’t push clients in a single course or the opposite. As a substitute, we give attention to schooling and transparency, empowering every buyer to make the selection that’s proper for them. Our function is to assist and inform, whether or not that’s serving to somebody select a conventional mined diamond with timeless attraction, or introducing them to a lab-grown various that gives the identical sparkle and sturdiness at a extra accessible worth level.”
He added: “That mentioned, there’s no denying the compelling worth proposition of lab-grown diamonds. While you mix that with a lighter environmental footprint and no compromise on high quality, it’s clear why many shoppers are selecting this feature, particularly for milestone purchases.
“This shift in client behaviour aligns with our wider strategic ambitions. We’re at present in search of to associate with strategic buyers who share our imaginative and prescient and will help us take our model, fame and powerful basis of British heritage and craftsmanship into key worldwide markets. Our story is rooted in high quality, belief and innovation, and we’re happy with our journey from a UK-born model to a worldwide title in accessible luxurious. We imagine the subsequent chapter is about progress, and lab-grown diamonds are only one a part of a a lot larger image.”
