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HK, Bangkok Jewelry Firm Goes Bust
Oct 11, 2015 3:23 AM
By Rapaport News
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RAPAPORT... A diamond jewelry firm in Hong Kong and Bangkok has gone bankrupt and defaulted on $54 million (Rs 350 crore), according to The Times of India.
The newspaper, which did not disclose the identity of the firm, reported that two other industry companies in Bangkok were also in a poor financial condition, despite hopes of strong profits in the run-up to the Diwali festival.
Polished diamond suppliers in Surat and Mumbai have been making “frantic inquiries” after hearing about their clients’ poor performance, the report said. The failures could have a significant knock-on effect on traders.
“Traders in Hong Kong and our suppliers in Surat are worried over bankruptcy of jewelry companies here. The sum involved is very huge and many suppliers from Surat and Mumbai may suffer huge losses ahead of the Diwali festival. Most of the polished diamonds imported by China are from Hong Kong and the trade is in the hands of Gujarati diamantaires,” the newspaper reported a Hong Kong diamantaire as saying.
India exports $28 billion worth of polished diamonds every year, according to the report, out of which nearly $9.5 billion goes to Hong Kong.
The report quotes Gems and Jewellery Exports Promotion Council (GJEPC) regional chairman Dinesh Navadia saying, “We are gathering details from Hong Kong and Bangkok about reports that a diamond jewellery company has become bankrupt. It is bad news for diamond exporters from Surat and Mumbai.”
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Tags:
bankruptcy, Hong Kong, India, Rapaport News
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