Majors

Paramount Jewels To Buy A. Jaffe for $5.2M

MajorsJul 16, 2018

Paramount Jewels To Buy A. Jaffe for $5.2M

Paramount Jewels is an affiliate of Paramount Gems/Parag Diamonds, the company that tried to buy A. Jaffe earlier this year.

20180228_A_Jaffe_map.jpg
New York-based jewelry company A. Jaffe, a maker of diamond engagement rings and the diamond-set map jewelry seen here, is set to be sold to Paramount Jewels LLC for $5.2 million.

New York—Paramount Jewels LLC has placed the winning bid for A. Jaffe, the Nirav Modi-owned company that filed for bankruptcy earlier this year.

In a deal finalized late Friday, Paramount Jewels, an affiliate of Paramount Gems and Parag Diamonds Inc., agreed to buy the diamond jewelry company’s brand and business for $5.2 million.

This includes all of A. Jaffe’s core assets: its name, intellectual property, design patents, accounts receivable and inventory; all the assets, the companies said in a statement, that are “needed for A. Jaffe to continue as the successful brand that it is recognized as in the industry and to consumers.”

Jewelex Diamonds, GBC, Diamonds International and Amipi Inc. bought some non-core assets, including inventory, for a total of $1.2 million. Additional non-core assets will be sold at a later date.

According to a statement from the companies, A. Jaffe employees will stay on, with Sumay Bhansali as CEO and Sam Sandberg as chairman, and the company will operate as its own entity independent of Paramount Jewels.

Parag Jain, manager of Paramount Gems/Parag Diamonds, said A. Jaffe has always been, “a leader and a pioneer in the jewelry industry” and his company is not looking to change that.

“There will be no restructuring,” he said. “A. Jaffe will continue to operate with the utmost quality, customer service and its outstanding product offering. The company will be stronger than ever.”

The $5.2 million purchase price is about $3 million less than what Paramount Gems/Parag agreed to pay for A. Jaffe when the first auction for the company was conducted in May, though that sale included additional assets and inventory that were sold off separately this time. The May sale was halted by the judge and ultimately withdrawn by A. Jaffe’s attorney. 

A motion has been filed with U.S. Bankruptcy Court in New York City to approve the sale. It is scheduled to be heard July 25.

A. Jaffe filed for Chapter 11 bankruptcy protection in New York in February shortly after news broke that Modi, who ultimately owns the company, was wanted for bilking state-run Punjab National Bank out of nearly $2 billion.

Filing along with A. Jaffe were the two other U.S.-based companies connected to Modi, Firestar Diamond Inc. and Fantasy Inc.; the companies went Chapter 11 in order to distance themselves from Modi and the scandal erupting in India and because their source of supply—Modi’s factories

in India—shut down in the wake of the scandal.

The inventory of both Firestar and Fantasy remain up for sale, with Unique Designs filing the highest bid for the latter’s inventory so far, court papers show.

In April, the bankruptcy court appointed an independent examiner to investigate Modi’s ties to all three companies—A. Jaffe, Firestar and Fantasy—and whether any employees in the United States were involved.

That investigation continues, though court papers show that as part of the sale, Paramount Jewels is distancing itself from any issues that might arise from the examiner’s findings.

The proposed sale order filed Friday states: “This order shall not transfer any claims or causes of action to the purchaser against (1) the debtors’ employees, affiliates, direct or in direct interest holders, or insiders … that the examiner determines in his report to have likely participated in the alleged fraud involving Nirav Modi and certain persons or entities affiliated with Nirav Modi that is being investigated by the examiner … and (2) any other person or entity that examiner determines in his report to have likely participated in the alleged Modi fraud or acted in bad faith in its dealings with the debtors.”

Editor’s note: This story was updated post-publication to include the purchase price for the non-core assets ($1.2 million) and to provide clarity on what the $5.2 million paid for A. Jaffe includes.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Warren H. Morss, Monica L. Caldwell, Mark T. Cartwright
GradingJun 21, 2024
ASA Elects New Gems and Jewelry Discipline Governor, Members-At-Large

Warren H. Morss is the new governor, while Monica L. Caldwell and Mark T. Cartwright are the members-at-large.

Ella Klein internship
SourcingJun 21, 2024
Julius Klein Partners With WJA on New Internship

The Ella Klein Internship will take place in New York this summer.

Zadok Jewelers Texas Collection
CollectionsJun 21, 2024
Say Howdy to Zadok Jewelers’ New ‘Texas’ Collection

Cowboy boots, horseshoes, and longhorn motifs make an appearance in the Houston-based jeweler’s new line.

Untitled design.jpg
Brought to you by
The End of an Era? Lab-Grown Diamonds' Journey Towards Price Stability

As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.

Eriness’ Snake Coil Necklace
CollectionsJun 21, 2024
Piece of the Week: Eriness’ ‘Snake Coil’ Necklace

Join Eriness’ garden party with this emerald-eyed snake.

Weekly QuizJun 20, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
National Oceanic and Atmospheric Administration hurricane satellite image
Policies & IssuesJun 20, 2024
5 Safety and Preparedness Tips for Jewelers This Hurricane Season

Jewelers Mutual is advising jewelers along the coast to prepare for above-normal hurricane activity this year.

Precious: The History and Mystery of Gems Across Time
SourcingJun 20, 2024
Jewelry Expert Helen Molesworth to Release First Book

“Precious: The History and Mystery of Gems Across Time” will be available on Sept. 17.

1872 x 1052 Gemolite.jpg
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional Edition

GIA®’s most advanced microscope has new features to optimize greater precision and comfort.

Jewelers of America advocacy trip DC 2024
Policies & IssuesJun 18, 2024
JA, Industry Leaders Take Russian Diamond Import Concerns to D.C.

The group met with lawmakers to raise awareness about the financial, operational, and supply chain harms posed by an EU proposal.

Louis Comfort Tiffany 1900 gold and opal necklace
Events & AwardsJun 18, 2024
Driehaus Museum Displaying Rare Jewels From Chicago Collections

The museum also will host jewelry heist-themed movie nights throughout the run of “Chicago Collects: Jewelry in Perspective.”

Models wearing Pomellato’s “The Dualism of Milan” collection
CollectionsJun 18, 2024
Pomellato’s New High Jewelry Collection Celebrates Milan

“The Dualism of Milan” collection features two chapters representing the monochromatic and colorful spirit of the city.

Dorian Webb, Kealeboga and Ursula Pule
CollectionsJun 18, 2024
Zales Adds Dorian Webb, Nungu Diamonds to Designer Edit

The Designer Edit, launched earlier this year, highlights up-and-coming jewelry designers.

National Association of Jewelry Appraisers Logo
Events & AwardsJun 18, 2024
NAJA Announces Its Mid-Year ‘Ace It’ Conference

The conference will focus on the “practical ‘how to’ of appraising gems and jewelry,” said NAJA Executive Director Gail Brett Levine.

De Beers CEO Al Cook
EditorsJun 17, 2024
Q&A: Al Cook on the Future of De Beers

The De Beers CEO discussed the Anglo American situation, natural diamond marketing, and why the future of lab-grown diamonds is technology.

Bernd Munsteiner
SourcingJun 17, 2024
Fantasy Cut Inventor Bernd Munsteiner Dies at 81

Known to many as the “Picasso of gems" who modernized the gem cutting field, he is remembered by his family as going through life with open eyes.

Thomas Markle Jewelers interior
IndependentsJun 17, 2024
Thomas Markle Jewelers to Relocate

The Houston-based family jeweler is relocating its flagship just across the street.

Instore and Chicago Responsible Jewelry Conference Logos
Events & AwardsJun 17, 2024
Instore Show, Chicago Responsible Jewelry Conference to Co-Locate

The partnership, now in its second year, allows CRJC attendees to register for a free Instore show badge.

Stock image of a gavel
CrimeJun 14, 2024
2 Men Sentenced to Life in 2022 Murder of Detroit-Area Jeweler

In court, Daniel Hutchinson’s loved ones remembered the jeweler as a giver, a role model, and a leader.

Billie Bangle
CollectionsJun 14, 2024
Piece of the Week: Jade Trau’s ‘Billie’ Bangle

Take a walk along this bangle’s diamond “cobblestone” made from round-, pear-, and marquise-cut diamonds.

Graphic with headshots for My Next Question 2024 Las Vegas webinar
Recorded WebinarsJun 14, 2024
Watch: What Happened in Vegas in 2024

The National Jeweler editors discuss the hot topics, best jewels, and current trends that stood out during Jewelry Market Week.

NJSB1.JPG
Supplier BulletinJun 13, 2024
Leading with Innovation: Core Scientific’s Advanced Refining Solutions

Sponsored by Core Scientific

Vera Wang Love True lab-grown diamond engagement ring
FinancialsJun 13, 2024
Signet Awaits Engagement Recovery as Q1 Sales Sink 9%

The company is expecting to see a 5 to 10 percent increase in engagements this year.

QVC HSN logo
MajorsJun 13, 2024
HSN, QVC Parent Company Faces Delisting

Qurate Retail is in the middle of a turnaround plan as it battles declining sales.

45.07-carat step cut fancy vivid yellow diamond
AuctionsJun 13, 2024
45-Carat Yellow Diamond Withdrawn from Phillips Auction

Signed jewels and period pieces stood out at the sale.

Marie Lichtenberg Scapular necklace
TrendsJun 13, 2024
Amanda’s Style File: For the Fathers

Showcase your dad’s personal style with a piece of fine jewelry for Father’s Day.

The Eden Rose Diamond
AuctionsJun 12, 2024
10-Carat Pink Diamond Sells for $13M at Christie’s

“The Eden Rose” is a fancy intense pink diamond that was appearing at auction for the first time.

Charles & Colvard moissanite ring
GradingJun 12, 2024
IGI to Grade Charles & Colvard Moissanite

The partnership follows the launch of the jewelry company’s B2B moissanite platform.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy