An online diamond retailer is filing for bankruptcy after racking up $1.8 million in debt.
New York-based Enchanted Diamonds, an arm of Online Diamonds International, has filed for Chapter 7 bankruptcy amid a rash of complaints coming from customers and others.
When all of the debts racked up by Enchanted Diamonds are put together, the figure is around $1.8 million. Many customers lost a lot of money trying to buy diamonds from the online diamond retailer, with some losing five-figure amounts. While it wasn’t always incredibly common for people to purchase such an expensive item online, people are purchasing pretty much everything online these days. Large and significant investments such as diamonds for special occasions, and even wedding dresses, are commonly purchased online now. While this does offer an extra layer of convenience, it does leave people vulnerable to not getting what they paid for, one way or another.
Now that Enchanted Diamonds is filing for bankruptcy, the bankruptcy court for the southern district of New York has revealed a list of unsecured creditors. Many of these creditors are owed tens of thousands of dollars. One customer in California who said he researched the purchase for a few weeks and found nothing out of order is owed $10,300 after trying to buy a diamond for a significant other. One other customer, also in California, is owed $101,880. After customers started complaining that their diamonds were not coming, the Better Business Bureau (BBB) put out a consumer alert on Enchanted Diamonds. The BBB also ended their accreditation of the company, which also has a brick-&-mortar location in New York.