The auction of defunct fine jeweler Fortunoff's loose diamonds recovered more than 73% of the retailer's cost, according to liquidation specialist SimplexDiam.

The auction, which was held by the liquidation specialists earlier in June, included only small (70 pointers and below), uncertified diamonds.

According to SimplexDiam, other wholesale auctions held recently in the fine jewelry industry have recovered only between 35-55% of the wholesale cost.

Retailers generally pay a 20% markup on loose diamonds weighing under 70 points; in effect, this means that SimplexDiam recovered 87.6% of the diamonds’ wholesale cost (73% of 120 cents).

Shail Madhvani, SimplexDiam's vice president of finance, stated: “Intelligent selection, based on multiple variables, allows us to maximize value for the bidder and the estate."



SimplexDiam has been involved in several of the diamond and jewelry industry's recent bankruptcies, including bidding and winning the residual jewelry and diamond inventories in the cases of fine jewelry chains such as Friedman's Jewelers, Whitehall Jewelers and Christian Bernard Stores.