SimplexDiam Inc. wins the bulk of $27,000,000 at retail of the residual inventory at the Whitehall court ordered bankruptcy sale.

News Release – For Immediate Release 

Contact: Neel Madhvani (212) 883-0888, email: neel@simplexdiam.com

SimplexDiam Inc. wins the bulk of $27,000,000 at retail of the residual inventory at the Whitehall court ordered bankruptcy sale.

New York, NY – February 5, 2009 SimplexDiam, Inc. announced today acquisitions of over $25,000,000 at retail in the month of January alone, $15,000,000 of which was from Whitehall’s bankruptcy sale.

After winning Friedman’s residual inventory, Simplex has purchased large amounts of closeout and liquidation inventory at other major retailers. Says Chairman & CEO Yogesh Madhvani, “We’re entering a period in which liquidating inventory is essential. We help companies and banks monetize their inventory with the utmost discretion. This gives us a unique advantage. Unless it’s public record, we simply do not name names.”

Only weeks into Barack Obama’s presidency, it is clear that hope alone will not drag us out of this difficulty. All arrows point to a deeper struggle, more bankruptcies, a weakening retail environment, and far more downside in the real estate markets. Banks will have to clamp down. Exponentially greater inventory is going to be available each month as they take control of inventories of clients in technical default.

Simplex’s work on the LID 363 sale positioned them as a key player in this part of the liquidation process. Their assistance contributed to a significantly higher recovery for the banks than other liquidations of fine jewelry in recent history. Chris Ellis, the President of Consensus Advisers LLC & CRO in the LID Bankruptcy noted, “SimplexDiam played a number of significant roles during the valuation phase and eventual auction of the $70 million of LID inventory. Their efforts contributed to a greater than expected recovery from the sale of the inventory. We value SimplexDiam's input and would readily work again with such an industrious team.” 

Even with consistent growth, SimplexDiam is exploring a new business. Their services and consulting division is now providing event sales support and running GOB sales for its customers. They have brought on strong supervisors and industry veterans to manage these sales. Says Vice President Shail Madhvani: “Even strong companies need to close stores. It is our responsibility to maximize their recovery. We sell down their poorly performing assets and only supplement when it is absolutely necessary. This is less profitable for us but we’ll readily trade profit to maintain our integrity.”
   
Yogesh Madhvani has been an entrepreneur for over 33 years, founding and running companies in markets as diverse as textiles and diamonds. Madhvani was a founding director of the Indian Diamond & Colorstone Association (IDCA) and a founding member of the Indo Argyle Diamond Council (IADC). He is a member of many other trade bodies such as the Jewelers Vigilance Committee (JVC), the Jewelers Board of Trade (JBT), and the American Gem Trade Association (AGTA). He is also a donor to numerous charitable organizations.

For more information on SimplexDiam, or to request a confidential appointment, please call (212) 883-0888, email sales@simplexdiam.com or visit www.SimplexDiam.com.

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