Enchanted Diamonds Files for Bankruptcy

RAPAPORT… Online retailer Enchanted Diamonds has gone into liquidation with liabilities of $1.7 million.

The company, which also had a showroom in Times Square, Manhattan, filed for Chapter 7 bankruptcy in New York federal court on June 20. This follows a suspension of the company’s Better Business Bureau (BBB) A+ accreditation, with BBB confirming it had received a spike in consumer complaints regarding transactions with the business.

Customers from 11 US states have contacted the bureau in recent weeks, complaining about lack of communication with Enchanted Diamonds.

The e-tailer, which also goes by the business name Online Diamonds International Corporation, has been subject to scrutiny by US-based online aggregator Rare Carat since June 12. CEO Ajay Anand published a blog post on the website six days later, stating that Enchanted Diamonds had not been featured on its site since May 30 because it had contravened Rare Carat’s listing rules.

A representative from Enchanted Diamonds, which also sold loose stones and jewelry on its own website, had emailed customers on June 15, Anand added, telling them that it would resume operations at the start of the following week.

He has since confirmed that, as this did not happen, Rare Carat will file lawsuits and pay legal fees for consumers who say they have not received their orders. The directive will apply regardless of whether they used the site to find the e-tailer.

Enchanted Diamonds, which was formally incorporated in October 2012, had been headed by president Joshua Niamehr.

Image: A diamond engagement ring from the Enchanted Diamonds collection. (Enchanted Diamonds/Facebook)