Compass-Backed Lugano Diamonds Files for Chapter 11 Bankruptcy Amid Fraud Allegations and Luxury Retail Slowdown
November 18, 2025 Lugano Diamonds & Jewelry Inc., the ultra-luxury jeweler known for multimillion‑dollar bespoke pieces and private salons, has filed for Chapter 11 bankruptcy in Delaware and put itself up for sale, just as the crucial holiday shopping season kicks into gear. The Newport Beach–based retailer, majority‑owned by investment firm Compass Diversified, is seeking court protection after internal probes uncovered serious financial irregularities and a cascade of lawsuits tied to its former chief executive and co‑founder, Mordechai “Moti” Ferder. JCK+1 At the same time, the move underscores how even the very top of the luxury market is feeling the