Jewelry firm Dia Deb International was forced into an involuntary Chapter 7 filing by five creditors.
The Chapter 7 petition was filed Thursday in a Manhattan bankruptcy court.
Dia Deb International, located at 587 Fifth Avenue, is owned by Asher Roshan Zamir. Zamir also has real estate interests through the family-owned real estate investment firm Zamir Equities. Zamir could not be reached for comment by press time.
Dia-Deb manufactures and distributes fine jewels and diamonds in New York, Tel Aviv and Bombay.
The five creditors, all based in Manhattan, are: Apex Gems, Inc., owed $139,354.39; Sanghavi Diamonds Inc., $39,774.10; Bluerays, Inc., $10,108.45; D&P Diamond Inc., $6,874.90, and C.M. Diamond (NY) Inc., $10,312.30.
The jewelry sector has been hit especially hard in the aftermath of the economic downturn in recent years as consumers pulled back on discretionary spending. In addition, a credit crunch at banks has also limited the availability of funding for the sector.
Independent firms have also found it difficult to manage high-end businesses because of the need to keep diamonds and other precious stones in inventory. In addition, many are now impacted as well by the higher prices in precious metals.
In recent weeks, gold has been climbing to over $1,590 an ounce; silver at nearly $40; platinum at over $1,750, and Palladium in the $785 range.