Britain’s largest online diamond jewellery retailer is considering selling a stake in the company to external investors for the first time in its 69-year history.
Sky News has learned that The Diamond Store, owned by its founding family, is collaborating with advisors on a process to attract new investors due to the increasing demand for lab-grown diamonds among consumers.
Sources close to the process have revealed that discussions are already underway with a significant number of potential investors.
Cavendish, the investment bank, is facilitating the conversations with potential backers.
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The Diamond Store offers jewellery with both natural and lab-grown diamonds, with a report from Bain & Company stating that sales of lab-grown diamonds grew by about 40% in 2022, driven by rising consumer demand, improved production efficiencies, and increased retail adoption.
The identities of the interested parties are currently unknown.
«We are witnessing a strong and growing interest in lab-grown diamonds across Europe, especially in markets where awareness is increasing but choices are limited,» said Jeremy Kanzen, CEO of The Diamond Store.
«We are actively pursuing strategic partnerships to accelerate our global expansion and meet this demand.
«Having a selective physical presence in the UK and key European cities through premium concessions and pop-up stores will be crucial in enhancing brand visibility, building trust, and driving high-value conversions.»
«Global sales of lab-grown diamonds now represent nearly 20% of the global diamond market, with this figure expected to rise significantly over the next five years,» Mr. Kanzen added.
«Consumers, especially younger demographics, are quickly moving away from traditional retail models in favor of brands that offer ethical innovation, transparency, and seamless online experiences.»
The company, which is headquartered in London and was established in Hatton Garden, the heart of the capital’s jewellery industry, has around 70 employees.
The Diamond Store’s revenues are increasing at a double-digit rate, and Mr. Kanzen stated that with a new partner, its earnings before interest, tax, depreciation, and amortization (EBITDA) could double in the next three years.
These discussions with investors come two years after Vashi, a diamond jewellery retailer founded by Vashi Dominguez, went into liquidation, resulting in significant losses for investors.
Mr. Dominguez has been accused by his investors of operating the business fraudulently, allegedly instructing staff to pose as customers.