Lugano Diamonds Acquired by Middle West Partners

Lugano Diamonds, the high-end jeweler known for custom pieces starting at $50,000, has been acquired by investment firm Middle West Partners, with several longtime clients joining the deal as investors. The transaction, which closed September 30, follows a year of financial turmoil and restructuring after the company filed for Chapter 11 bankruptcy in November 2025. Josh Gaynor, who had been serving as interim CEO, will now lead the company as its permanent chief and will take a seat on the board. Before joining Lugano, Gaynor worked in senior positions at Bottega Veneta and Fendi, and headed Bulgari North America’s high jewelry division.

Middle West Partners, which is also known for its 2025 purchase of heritage jeweler David Webb, completed the acquisition with support from Boston-based Gordon Brothers. The company announced that Lugano’s four boutiques, in Newport Beach, Aspen, Ocala, and Miami, will remain open, and its Newport Beach headquarters and jewelry workshop will continue operations. Lugano had expanded to ten stores by 2025, but six locations closed during the bankruptcy process.

Founded in 2004 by Mordechai (Moti) Ferder and his wife, Edit, Lugano built its reputation on creating one-of-a-kind jewelry for ultra-wealthy clients. By 2021, the company had attracted the attention of Compass Diversified (CODI), which acquired a majority stake for $103.7 million, valuing Lugano at over $250 million. Ferder remained as CEO after the acquisition, and the company’s sales reportedly quadrupled in the following three years.

However, in 2025, CODI disclosed “irregularities” in Lugano’s financial records and stated that its finances “should no longer be relied upon.” Ferder resigned and left the United States, with court papers indicating he is now in Tel Aviv. CODI filed suit in federal court, accusing Ferder of orchestrating fraudulent side deals involving non-existent diamonds and misusing company funds. The Securities and Exchange Commission also filed charges against Ferder, alleging forged records and more than $1 billion in fictitious revenue. Ferder has denied all allegations through his attorney, who called CODI’s lawsuit “a clear effort to misdirect accountability for the company’s action, performance, and ultimate failure, which occurred after Mr. Ferder’s departure from leadership.”

Despite the turmoil, Gaynor credited the 75-person team and loyal clients for keeping the company afloat. In a recent statement, he wrote, “The past year and a half tested our team in ways none of us could have imagined. Much of it played out in public.” He noted that some clients have become part owners in the business, a move he described as a significant show of support.

The period leading up to the acquisition was marked by a series of rapid changes for Lugano. In June, Compass Diversified announced it would liquidate its assets, and the company’s holdings were sold to Enhanced Retail Funding, a division of Gordon Brothers. Gordon Brothers then supported Middle West Partners in the purchase of Lugano, as it had done previously with David Webb. Both Middle West Partners and Gordon Brothers are based in Boston, and their involvement was key in securing the jeweler’s future.

Lugano’s boutiques, which had once numbered ten, are now focused on four locations. The Newport Beach flagship remains the center of operations, housing both the company’s headquarters and its jewelry workshop. The company’s staff, numbering 75, continued to serve clients and maintain operations during the bankruptcy and transition. Gaynor has said that the loyalty of clients, some of whom invested in the new ownership, was essential to the company’s survival.

Kevin Kelleher, co-founder of Middle West Partners, said that Lugano has built its place in the luxury jewelry sector through strong relationships with its clientele. Gaynor stated that it’s too early to discuss future plans for the company. All four boutiques and the Newport Beach workshop will remain open under the new ownership.

The magazine has also looked at the expansion plans of other luxury jewelry buyers.