The high profile jewellery store, which has occupied its Hay Street Mall site since 1963, collapsed in May this year owing more than $18 million.
Receivers KordaMentha were appointed to try to recapitalise the business, searching for a buyer while holding a $9 million clearance sale. Macabi Diamonds was one of the unsecured creditors.
“I came back from a holiday and heard about the situation with Rosendorff Diamonds. I had a long-standing relationship with [owner] Craig Rosendorff as a supplier and the timing was key for me, as I was looking to move into the retail space,” Levy tells Jeweller.
“I was open to negotiating an outcome which ultimately kept the doors open – which is great for the staff, for the people of Perth and for me. It’s been just over one month now and things are going well. Business is steady and we’re very excited.”
Levy confirmed that all but one staff member have kept their jobs, and that the business now stocks one of the country’s largest selections of diamonds and diamond jewellery – including his own brand, Pink Eminence Diamonds.
“Here, it’s like a diamond engagement ring supermarket – there’s something here for everyone. You can touch and feel different sizes, for all budgets. I make the joke that we’re going to put baskets, like you get at Coles, at the door when you come in!” he laughs.
When asked about the business’ previous financial problems, Levy confirmed that it was likely that unsecured creditors would remain unpaid unless they had insurance.
An administrator’s report also lists Rosendorff Diamonds as owing $2.1 million to secured creditor Gordon Brothers, an asset advisory and investment firm, and $165,000 to the Australian Taxation Office.
However, Levy told Jeweller that the future was bright for the iconic store: “We are open for business and it’s going to be stronger than ever. Craig built an amazing business and team over 50 years in the industry, and I’m honoured, when I look around the store, to be taking his legacy forward.”
While new stock has already arrived, the Rosendorff Diamonds clearance sale will continue for a limited time with selected pieces still on offer at significant discounts. It was reported that the ‘liquidation sale’ had raised more than $2 million in early June, two weeks after it began.
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