The lawyers for Dia Deb Intl., the New
York City diamond company that was forced into Chapter 7 by three creditors in July, asked the court on Aug. 11 to approve the sale of certain of the company’s
assets to another New York City company, Sumit Diamond.
The proposed sale would include new inventory, new
receivables, jewelry sample lines, and a Judith Ripka license agreement, said
papers filed with the U.S. Bankruptcy Court, Southern District of New York.
Sumit intends to employ Michael Roshanzamir, Dia Deb’s president.
The purchase price for the assets is $381,000, plus a
percentage of net sales.
Dia Deb was also able to change its filing to a Chapter 11
from a Chapter 7.
In court papers, Dia Deb said its “business has been
negatively impacted by a number of factors over the last few years including
the slowing economy and inordinately large returns of product by its retail partners. These returns lead to heavy margin dilution
in an industry that, even in good times, operates on tight margins.”
Sumit Diamond could not be reached for comment. Dia Deb’s
attorney declined comment.