Owner Craig Rosendorff established the Hay Street Mall institution in 1963 as a gift store, before rebranding it as a luxury diamond and jewellery boutique in 1975.
An administrator’s report lists Rosendorff Diamonds as owing $17.9 million to three companies associated with Rosendorff. According to The West Australian Spinel Pty Ltd is owed $11.7 million while Lindendale Pty Ltd and Avion Holdings Pty Ltd appear on the creditors list for $3.2 million and $3 million respectively.
Craig Rosendorff is reported to be the sole director of each company.
Rosendorff Diamonds also owes $2.1 million to Gordon Brothers, an asset advisory and investment firm, and $165,000 to the Australian Taxation Office.
There are reportedly more than 80 other credit claims against the business, though the receivers, KordaMentha, have not confirmed them publicly.
In order to try and save the business, KordaMentha is holding a huge $9 million clearance sale of all stock, with huge discounts and negotiations offered on big-ticket items.
The sale has been heavily promoted in print and on social media and customers were seen queuing around the block over the weekend, with council rangers cordoning off part of the street to try and minimise disruption. Some people waited more than an hour for the chance to shop for a bargain.
As a result, Rosendorff Diamonds brought in more than $500,000 in sales in a single day, including an emerald-cut diamond ring sold for $125,000 – a 50 per cent discount from the sticker price.
The store reportedly turned over $1.7 million in less than a week – three times its average monthly sales.
After the sale, KordaMentha is looking to try and recapitalise the business. Laybys, special orders, repairs and gift cards will continue to be honoured.
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