l{"id":1338788,"date":"2024-08-10T12:22:45","date_gmt":"2024-08-10T11:22:45","guid":{"rendered":"https:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/"},"modified":"2024-08-10T12:22:45","modified_gmt":"2024-08-10T11:22:45","slug":"the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi","status":"publish","type":"post","link":"https:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/","title":{"rendered":"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi"},"content":{"rendered":"<p> <script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- newscabal uk text -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"3688094655\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p class=\"dcr-1hirwfs\"><span style=\"color:var(--drop-cap);font-weight:500;\" class=\"dcr-15rw6c2\">F<\/span>or John Caudwell, the giveaway was the bespoke diamond ring. One of Britain\u2019s wealthiest men had decided to put his investment in a diamond retailer called Vashi to the test with some mystery shopping.<\/p>\n<p class=\"dcr-1hirwfs\">\u201cI asked them to design a ring for me. It was terrible,\u201d says the founder of Phones 4u. \u201cThey claimed to be experts in design but the customer service was poor \u2013 it was slow, not effective and not a good design.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">The billionaire decided to dig deeper, paying a visit to Vashi\u2019s flagship London store in Covent Garden. He stood outside, counting how many shoppers went in, and says that from this snapshot he could not understand the company\u2019s sales claims: \u201cIt just didn\u2019t add up.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">Caudwell had already invested \u00a31m in Vashi, after its diamond-trader founder, Vashi Dom\u00ednguez, wooed him during the pandemic \u2013 and came with a promise of donating, also promising to donate to his charity, Caudwell Children. (Caudwell claims Vashi\u2019s charity donation was never forthcoming.) He says he was later asked for a further \u00a32m, but \u201cthey became irritable when we wanted a lot more detail\u201d and he did not stump up.<\/p>\n<p class=\"dcr-1hirwfs\">Now the tycoon is among a clutch of high-profile investors nursing losses after Vashi collapsed, leaving a trail of financial wreckage behind it \u2013 and questions over the whereabouts of diamonds and jewellery once valued at \u00a3157m.<\/p>\n<p class=\"dcr-1hirwfs\">Over more than a decade, the charismatic jeweller had wooed some of the UK\u2019s best known entrepreneurs as shareholders \u2013 from Caudwell to shirtmaker Charles Tyrwhitt\u2019s founder Nick Wheeler.<\/p>\n<p class=\"dcr-1hirwfs\">With its Covent Garden store, and presence on social media, the brand had been designed by Dom\u00ednguez to disrupt the staid diamond trade \u2013 offering jewellery designed for customers at relatively low prices, using what it described as ethically sourced, recycled diamonds.<\/p>\n<p class=\"dcr-1hirwfs\">But now the liquidators have been called in, questions have been asked over the existence of the missing stock \u2013 and investors, who have been left with an estimated \u00a3170m loss, have hired a private investigator to find Dom\u00ednguez. Of \u201cVanishing Vashi\u201d, as he is known to some, there is little trace.<\/p>\n<h2 id=\"tenerife-to-covent-garden\" class=\"dcr-12ibh7f\">Tenerife to Covent Garden<\/h2>\n<figure id=\"b2350ed0-5e86-470f-b7b6-e094bb48216a\" data-spacefinder-role=\"showcase\" data-spacefinder-type=\"model.dotcomrendering.pageElements.ImageBlockElement\" class=\" dcr-5h0uf4\"><figcaption data-spacefinder-role=\"inline\" class=\"dcr-1pvqcrw\"><span class=\"dcr-1inf02i\"><svg width=\"18\" height=\"13\" viewbox=\"0 0 18 13\"><path d=\"M18 3.5v8l-1.5 1.5h-15l-1.5-1.5v-8l1.5-1.5h3.5l2-2h4l2 2h3.5l1.5 1.5zm-9 7.5c1.9 0 3.5-1.6 3.5-3.5s-1.6-3.5-3.5-3.5-3.5 1.6-3.5 3.5 1.6 3.5 3.5 3.5z\"\/><\/svg><\/span><span class=\"dcr-1qvd3m6\">Vashi Dom\u00ednguez outside his Mayfair store in London, 2018.<\/span> Photograph: Richard Young\/Shutterstock<\/figcaption><\/figure>\n<p class=\"dcr-1hirwfs\">Dom\u00ednguez was born to a Spanish mother and Indian father on the island of Tenerife in 1978, attending the most expensive school on the largest of Spain\u2019s Canary Islands. His schooling was paid for from the success of his late mother, an insurance broker who Dom\u00ednguez has said was the top salesperson in the Canaries.<\/p>\n<p class=\"dcr-1hirwfs\">He studied law at the Universidad de la Laguna but left after two years and his first venture was selling imported electronics on the island.<\/p>\n<p class=\"dcr-1hirwfs\">By 20, he had developed an interest in diamonds and travelled to the industry hub in Antwerp repeatedly, eventually managing to buy rocks wholesale for retail in Tenerife and gaining momentum. He talked of attempting to keep a low profile for fear of being the target of thieves while carrying up to \u00a310m of stones in a briefcase.<\/p>\n<p class=\"dcr-1hirwfs\">His first million-pound profit came at the age of just 23, having spotted two businesses in Spain and one in Portugal on the verge of liquidation. After swooping on their stock, Dom\u00ednguez celebrated with a weekend in a villa in Tenerife with his future wife, Tammy. \u201cI was in the fortunate position where I was able to capitalise on an opportunity,\u201d he would later <a href=\"https:\/\/www.ft.com\/content\/69281718-bbfd-11e3-84f1-00144feabdc0\" data-link-name=\"in body link\">recall<\/a>.<\/p>\n<p class=\"dcr-1hirwfs\">In 2007, he set up Diamond Manufacturers \u2013 a direct sales business and the vehicle which would later become the holding company for the Vashi brand.<\/p>\n<p class=\"dcr-1hirwfs\">He positioned himself as a diamond expert, securing a flood of media coverage, with pieces in the <em>Financial Times<\/em>, MailOnline and the <em><a href=\"https:\/\/www.theguardian.com\/money\/2013\/jul\/02\/how-do-become-diamond-trader\" data-link-name=\"in body link\">Guardian<\/a><\/em>. He even <a href=\"https:\/\/www.youtube.com\/watch?v=pNdNXu7i11k\" data-link-name=\"in body link\">appeared<\/a> on <em>This Morning<\/em>, chatting with Holly Willoughby and Phillip Schofield while displaying a \u00a35m crystal egg that he said he was selling for a billionaire in Canada.<\/p>\n<p class=\"dcr-1hirwfs\">Dom\u00ednguez decided to supplement his online model selling direct to consumers online with shops in prime locations, debuting in London on Piccadilly in 2016, and later opening stores in the City\u2019s Royal Exchange shopping centre and Canary Wharf, with concessions in Selfridges in London and\u00a0Manchester.<\/p>\n<p class=\"dcr-1hirwfs\">In 2021, as retailers grappled with the pandemic, which was closing physical stores, Dom\u00ednguez doubled down and opened the glitzy \u201cconcept store\u201d in Covent Garden. Its diamond-encrusted jewellery was carefully displayed across two floors, while craftspeople, which Vashi described as \u201calchemists\u201d, occupied workbenches.<\/p>\n<p class=\"dcr-1hirwfs\">It was all designed to convey a message of exclusive individuality: customers could write love messages which were then displayed on a digital wall; even the store\u2019s scent had been meticulously planned. \u201cWe\u2019re trying to create a space that is engaging, inspirational, very immersive and transparent, and we\u2019re trying to demystify the whole industry,\u201d Dom\u00ednguez said in a promotional <a href=\"https:\/\/www.instagram.com\/tv\/CPX4EGEl1MC\/?igsh=YjY0djd3bmloanpq\" data-link-name=\"in body link\">video<\/a>.<\/p>\n<p class=\"dcr-1hirwfs\">The awards \u2013 and the rewards \u2013 rolled in. Vashi was named one of 15 companies most likely to become \u201cunicorns\u201d \u2013 worth more than $1bn \u2013 by Forbes. Dom\u00ednguez was a regional winner in EY\u2019s prestigious entrepreneur of the year prize in 2021.<\/p>\n<figure id=\"5d47ac7a-f121-4141-80c5-289ff9dfb7eb\" data-spacefinder-role=\"inline\" data-spacefinder-type=\"model.dotcomrendering.pageElements.ImageBlockElement\" class=\" dcr-173mewl\"><figcaption data-spacefinder-role=\"inline\" class=\"dcr-1fujct4\"><span class=\"dcr-1inf02i\"><svg width=\"18\" height=\"13\" viewbox=\"0 0 18 13\"><path d=\"M18 3.5v8l-1.5 1.5h-15l-1.5-1.5v-8l1.5-1.5h3.5l2-2h4l2 2h3.5l1.5 1.5zm-9 7.5c1.9 0 3.5-1.6 3.5-3.5s-1.6-3.5-3.5-3.5-3.5 1.6-3.5 3.5 1.6 3.5 3.5 3.5z\"\/><\/svg><\/span><span class=\"dcr-1qvd3m6\">Dominguez with Holly Willoughby on ITV\u2019s This Morning in 2014.<\/span> Photograph: ITV<\/figcaption><\/figure>\n<p class=\"dcr-1hirwfs\">A dividend of \u00a3213,532 was paid to Dom\u00ednguez in 2021, on top of another of \u00a3208,751 a year earlier. Dom\u00ednguez took frequent family holidays to beach destinations in the Caribbean and Mexico, and professed a \u201cweakness for cars\u201d. He owned a Maserati Quattroporte, which sell for more than \u00a3100,000.<\/p>\n<p class=\"dcr-1hirwfs\">\u201cVashi was a very impressive individual \u2013 intense and confident \u2013 who seemed to know his business very well,\u201d says Michael Moszynski, an entrepreneur and founder of the agency London Advertising, who invested three years ago.<\/p>\n<h2 id=\"the-fundraising-push\" class=\"dcr-12ibh7f\">The fundraising push<\/h2>\n<p class=\"dcr-1hirwfs\">Vashi\u2019s rise to prominence came against the backdrop of continuous fundraising efforts, attracting a host of star backers.<\/p>\n<p class=\"dcr-1hirwfs\">Among the big names, Icap billionaire Michael Spencer\u2019s family office held stock but sold out; Boohoo founder Mahmud Kamani was reportedly given shares; and William Jackson, founder of private equity firm Bridgepoint, was also an investor. Spencer, Kamani and Jackson declined to comment.<\/p>\n<p class=\"dcr-1hirwfs\">Charles Tyrwhitt\u2019s Wheeler says Dom\u00ednguez, with whom he once played tennis, arrived at his house for lunch in a \u00a3400,000 Ferrari. He says Dom\u00ednguez was \u201calways\u201d asking for further funds. \u201cMy wife is a very good judge of character \u2026 she said \u2018get your money out\u2019. He was extremely convincing at first. But I kept asking why he needed so much stock, and the answers were implausible. He asked me for more money, and I said no. I would like him to explain what he has done.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">One wealthy individual who put in more than \u00a31m claims Dom\u00ednguez had boasted in 2022 that, if the company could successfully launch in the US, a deal to be acquired by Cartier\u2019s owner, Richemont, had been informally agreed. \u201cVashi was flamboyant, personable and had an impressive background and pedigree,\u201d says the investor, who asked to remain anonymous.<\/p>\n<p class=\"dcr-1hirwfs\">An investor presentation from 2021, seen by the <em>Observer,<\/em> stated that there was a \u201cclear route to exit with expressed trade interest\u201d, suggesting that a buyer was lined up and that investors could cash out.<\/p>\n<p class=\"dcr-1hirwfs\">The presentation boasted that Vashi had a greater sales density \u2013 revenue per square metre of space \u2013 than Tiffany, the industry leader.<\/p>\n<p class=\"dcr-1hirwfs\">John Ames, a seasoned digital executive, was hired as chief technology officer in summer 2021 and recalls meeting Dom\u00ednguez in the Covent Garden store. \u201cHe turned up with a \u00a360,000 gold watch on his wrist,\u201d says Ames. \u201cHe was very smooth, with visionary talk about what he wanted to do with the business.<\/p>\n<p class=\"dcr-1hirwfs\">\u201cHe was a diamond trader and now wanted to build a brand.He told me he anticipated an exit to a luxury brand where Vashi could slot into their retail real estate.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">But within weeks, alarm bells rang. \u201cThere was no governance: no board meetings or board packs produced, and no easily accessible financial reporting,\u201d Ames claims.<\/p>\n<figure data-spacefinder-role=\"inline\" data-spacefinder-type=\"model.dotcomrendering.pageElements.NewsletterSignupBlockElement\" class=\" dcr-173mewl\"><a data-ignore=\"global-link-styling\" href=\"#EmailSignup-skip-link-33\" class=\"dcr-jzxpee\">skip past newsletter promotion<\/a><\/p>\n<aside aria-label=\"newsletter promotion\" class=\"dcr-av5vqf\">\n<p class=\"dcr-1xjndtj\">Analysis and opinion on the week&#8217;s news and culture brought to you by the best Observer writers <\/p>\n<p><gu-island name=\"SecureSignup\" priority=\"feature\" deferuntil=\"visible\" props=\"{&quot;newsletterId&quot;:&quot;observed&quot;,&quot;successDescription&quot;:&quot;Analysis and opinion on the week's news and culture brought to you by the best Observer writers &quot;}\"\/><span class=\"dcr-1eusqlu\"><strong>Privacy Notice: <\/strong>Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our <a data-ignore=\"global-link-styling\" href=\"https:\/\/www.theguardian.com\/help\/privacy-policy\" rel=\"noreferrer\" class=\"dcr-1rjy2q9\">Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google <a data-ignore=\"global-link-styling\" href=\"https:\/\/policies.google.com\/privacy\" rel=\"noreferrer\" class=\"dcr-1rjy2q9\">Privacy Policy<\/a> and <a data-ignore=\"global-link-styling\" href=\"https:\/\/policies.google.com\/terms\" rel=\"noreferrer\" class=\"dcr-1rjy2q9\">Terms of Service<\/a> apply.<\/span><\/aside>\n<p id=\"EmailSignup-skip-link-33\" tabindex=\"0\" aria-label=\"after newsletter promotion\" role=\"note\" class=\"dcr-jzxpee\">after newsletter promotion<\/p>\n<\/figure>\n<figure id=\"0f693b81-395c-40be-95a6-a82b744451a3\" data-spacefinder-role=\"supporting\" data-spacefinder-type=\"model.dotcomrendering.pageElements.ImageBlockElement\" class=\" dcr-a2pvoh\"><figcaption data-spacefinder-role=\"inline\" class=\"dcr-1pvqcrw\"><span class=\"dcr-1inf02i\"><svg width=\"18\" height=\"13\" viewbox=\"0 0 18 13\"><path d=\"M18 3.5v8l-1.5 1.5h-15l-1.5-1.5v-8l1.5-1.5h3.5l2-2h4l2 2h3.5l1.5 1.5zm-9 7.5c1.9 0 3.5-1.6 3.5-3.5s-1.6-3.5-3.5-3.5-3.5 1.6-3.5 3.5 1.6 3.5 3.5 3.5z\"\/><\/svg><\/span><span class=\"dcr-1qvd3m6\">John Caudwell: \u2018We did a fair amount of due diligence \u2013 clearly not enough.\u2019<\/span> Photograph: Victoria Jones\/PA Archive\/PA Images<\/figcaption><\/figure>\n<p class=\"dcr-1hirwfs\">Audited accounts for Diamond Manufacturers Ltd, filed at Companies House, showed full-year sales were up 97% in 2021, at \u00a3105.4m, from \u00a353.6m in 2020. Pre-tax profits hit \u00a314m in 2021, up from \u00a34.9m in 2020. The company was aiming to raise \u00a324m to fund high-end New York store openings, and \u00a351m to buy stock \u2013 a \u00a375m fundraising round which began in 2021 and valued the business at \u00a3250m. Vashi hoped to open in Japan, and have 200 stores in 15 countries \u201cin the near future\u201d.<\/p>\n<h2 id=\"dealer-loses-sparkle\" class=\"dcr-12ibh7f\">Dealer loses sparkle<\/h2>\n<p class=\"dcr-1hirwfs\">The cracks started to show in December 2022, when Vashi was the subject of a winding-up petition from one of its landlords, Canary Wharf Retail. Vashi owed it more than \u00a3250,000, and a further \u00a33.5m to other creditors, including diamond suppliers, according to a witness statement submitted by Dom\u00ednguez to the winding-up hearing.<\/p>\n<p class=\"dcr-1hirwfs\">He asked for more time for Vashi to repay its debts. Covid had hit footfall and interest rates had risen on its borrowing, he argued. As a result, he said, he was cutting its workforce by half to 100 employees and delaying the US expansion.<\/p>\n<p class=\"dcr-1hirwfs\">Despite his plea, liquidators from the restructuring firm Teneo were appointed in April 2023. Dom\u00ednguez disappeared shortly after that, sources say.<\/p>\n<p class=\"dcr-1hirwfs\">Liquidators quickly found that it would not be viable for the firm to continue to trade as there was \u201cno available funding nor any certainty around the prospects of trading profitability\u201d, their report says.<\/p>\n<p class=\"dcr-1hirwfs\">Another early job was to secure the diamonds, jewellery and business records, visiting all sites in the process and accessing safes. Staff were asked whether any further assets might be found off site.<\/p>\n<p class=\"dcr-1hirwfs\">Disparities soon emerged. The 2021 accounts, audited by a small firm called Inger &amp; Co (I&amp;C), reported the value of Vashi\u2019s stock was about \u00a3129m. Stock reports by I&amp;C valued the stock at \u00a3149m in October 2022, and then \u00a3157m in February 2023, including \u00a3120m in loose diamonds. The firm, whose office in Ilford, east London, is sandwiched between a Londis store and a grocer, did not explain how the stock had been valued in the accounts and stock reports.<\/p>\n<p class=\"dcr-1hirwfs\">However, liquidators note: \u201cThe stock collected was deemed to be significantly lower value than that noted in the 2021 accounts\u201d and that they had found no evidence that \u201csuch a level of assets\u201d had been owned \u201cat any point in the company\u2019s history\u201d. When specialists enlisted by the liquidators valued the stock and sold it via auction they realised a value of just \u00a3147,000.<\/p>\n<p class=\"dcr-1hirwfs\">That left investors fuming. \u201cThe independent valuation of the diamonds they had in stock gave me confidence that, even if the business failed, I would get most of my money back,\u201d says Moszynski.<\/p>\n<p class=\"dcr-1hirwfs\">Teneo says it is \u201cuncertain\u201d whether claims for \u00a32.5m from primary creditors will be paid. Moreover, it does not expect to be able to return the \u00a34.6m owed to HMRC or the 275 claims for a total of \u00a3162m from unsecured creditors.<\/p>\n<figure id=\"2cd3e4b8-db82-4045-bc15-703a2c3df16c\" data-spacefinder-role=\"inline\" data-spacefinder-type=\"model.dotcomrendering.pageElements.ImageBlockElement\" class=\" dcr-173mewl\"><figcaption data-spacefinder-role=\"inline\" class=\"dcr-1fujct4\"><span class=\"dcr-1inf02i\"><svg width=\"18\" height=\"13\" viewbox=\"0 0 18 13\"><path d=\"M18 3.5v8l-1.5 1.5h-15l-1.5-1.5v-8l1.5-1.5h3.5l2-2h4l2 2h3.5l1.5 1.5zm-9 7.5c1.9 0 3.5-1.6 3.5-3.5s-1.6-3.5-3.5-3.5-3.5 1.6-3.5 3.5 1.6 3.5 3.5 3.5z\"\/><\/svg><\/span><span class=\"dcr-1qvd3m6\">Mahmud Kamani, the founder of Boohoo, was reportedly given shares in Vashi by Dom\u00ednguez.<\/span> Photograph: Christopher Thomond\/The  Observer<\/figcaption><\/figure>\n<p class=\"dcr-1hirwfs\">\u201cI\u2019m angry with Vashi, the auditors, the gem valuers and those around him; this appeared a sound investment,\u201d says Moszynski. \u201cInvestors are now calling him \u2018Vanishing Vashi\u2019.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">Some investors have felt let down by another member of the Vashi team, Charles Leach, who they say helped persuade them to plough in money. Leach, who was listed as chief financial officer (CFO) in investor materials, described himself as \u201cconsultant CFO\u201d. Leach claims he had no access to internal company financial documents, and that he lost his own money in Vashi\u2019s collapse and feels \u201cused\u201d by its founder. \u201cIt\u2019s hard to put into words the trauma of this experience,\u201d he says.<\/p>\n<p class=\"dcr-1hirwfs\">Investors say they also raised concerns directly with Dom\u00ednguez over I&amp;C. They argued that, as a small operation, it was unsuitable to approve accounts for such a large company. I&amp;C declined to comment.<\/p>\n<p class=\"dcr-1hirwfs\">Investors believe the company raised at least \u00a3120m in convertible loan notes, as well as a further \u00a350m raised in 2022, putting the loss at about \u00a3170m if nothing substantial is recovered. One US family office alone sunk more than \u00a310m in, a former employee says.<\/p>\n<p class=\"dcr-1hirwfs\">Ultimately, it is unclear where that money has been spent, and, if the business ever owned diamonds worth more than \u00a3100m, where they are now.<\/p>\n<p class=\"dcr-1hirwfs\">Sources close to the company also allege Vashi staff were asked to pose as customers in order to make the stores appear busier than in reality. A post on the workplace review site Glassdoor makes the same claim.<\/p>\n<h2 id=\"hunting-dominguez\" class=\"dcr-12ibh7f\">Hunting Dom\u00ednguez<\/h2>\n<p class=\"dcr-1hirwfs\">Some investors hired a private investigator to find Dom\u00ednguez but decided against \u201cthrowing good money after bad\u201d after initial work. Several sources believe he is in Dubai \u2013 a popular destination for the tycoon when away from the family home in central London.<\/p>\n<p class=\"dcr-1hirwfs\">The <em>Observer<\/em> attempted to reach Dom\u00ednguez via two London addresses. At one, a woman claimed to have no knowledge of him.<\/p>\n<p class=\"dcr-1hirwfs\">Investors are now nursing their losses. \u201cSome of the experienced investors are simply embarrassed that this has happened,\u201d says one creditor. Another says: \u201cWhat gave me encouragement was that there were seasoned investors already in the business.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">The former Pret a Manger boss Clive Schlee, a member of the registered creditors\u2019 committee, says: \u201cI\u2019m over it. I haven\u2019t got any comment to make.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">Caudwell, with an <a href=\"https:\/\/www.thetimes.com\/life-style\/health-fitness\/article\/the-billionaire-businessman-the-rich-treat-as-a-pariah-p5tt6p8nt#:~:text=In%20contrast%2C%20according%20to%20the,he's%20humble%2C%E2%80%9D%20Bone%20says.\" data-link-name=\"in body link\">estimated fortune<\/a> of \u00a31.5bn, is relatively unconcerned by the financial loss. \u201cWe did a fair amount of due diligence \u2013 clearly not enough, but there\u2019s only so much resource you can put into a \u00a31m investment,\u201d he says.<\/p>\n<p class=\"dcr-1hirwfs\">Moszynski says: \u201cWhen Vashi was issued with a winding-up order, it was a shock: the audited accounts had boasted of healthy growth with revenues of more than \u00a3100m. From the liquidators\u2019 report, it looks like the investors will get nothing back.<\/p>\n<p class=\"dcr-1hirwfs\">\u201cIt\u2019s imperative that the collapse of Vashi is investigated by the authorities to give people confidence in investing in the UK in the future. This is not just about [protecting] investors, but safeguarding job creation and tax revenues that pay for the NHS and more.\u201d<\/p>\n<p class=\"dcr-1hirwfs\">He has submitted a complaint and evidence to the UK\u2019s Serious Fraud Office. The SFO declined to say whether it would investigate.<\/p>\n<p class=\"dcr-1hirwfs\">Ames says: \u201cWhat made me really angry was there were so many good people in that business: young, motivated, inspiring. That was really upsetting.\u201d<\/p>\n<\/div>\n<p><script async src=\"\/\/www.instagram.com\/embed.js\"><\/script><br \/>\n<br \/><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"7859258044\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\">READ SOURCE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For John Caudwell, the giveaway was the bespoke diamond ring. One of Britain\u2019s wealthiest men had decided to put his investment in a diamond retailer called Vashi to the test with some mystery shopping. \u201cI asked them to design a ring for me. It was terrible,\u201d says the founder of Phones 4u. \u201cThey claimed to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1338789,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_oct_exclude_from_cache":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-1338788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi - Business Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi - Business Telegraph\" \/>\n<meta property=\"og:description\" content=\"For John Caudwell, the giveaway was the bespoke diamond ring. One of Britain\u2019s wealthiest men had decided to put his investment in a diamond retailer called Vashi to the test with some mystery shopping. \u201cI asked them to design a ring for me. It was terrible,\u201d says the founder of Phones 4u. \u201cThey claimed to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\" \/>\n<meta property=\"og:site_name\" content=\"Business Telegraph\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-10T11:22:45+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"businesstelegraph\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"businesstelegraph\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#article\",\"isPartOf\":{\"@id\":\"http:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/\"},\"author\":{\"name\":\"businesstelegraph\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/person\/0a3a6a0f58402f1f2af94e02d0987b78\"},\"headline\":\"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi\",\"datePublished\":\"2024-08-10T11:22:45+00:00\",\"dateModified\":\"2024-08-10T11:22:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/\"},\"wordCount\":2490,\"publisher\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg\",\"articleSection\":[\"Retail\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/\",\"url\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\",\"name\":\"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi - Business Telegraph\",\"isPartOf\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg\",\"datePublished\":\"2024-08-10T11:22:45+00:00\",\"dateModified\":\"2024-08-10T11:22:45+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage\",\"url\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg\",\"contentUrl\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.businesstelegraph.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#website\",\"url\":\"https:\/\/www.businesstelegraph.co.uk\/\",\"name\":\"Business Telegraph UK\",\"description\":\"business, tech and industry news\",\"publisher\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.businesstelegraph.co.uk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#organization\",\"name\":\"Business Telegraph UK\",\"url\":\"https:\/\/www.businesstelegraph.co.uk\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/03\/business-telegraph-LOGO.png\",\"contentUrl\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/03\/business-telegraph-LOGO.png\",\"width\":500,\"height\":177,\"caption\":\"Business Telegraph UK\"},\"image\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/person\/0a3a6a0f58402f1f2af94e02d0987b78\",\"name\":\"businesstelegraph\",\"url\":\"https:\/\/www.businesstelegraph.co.uk\/author\/businesstelegraph\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi - Business Telegraph","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi","og_locale":"en_GB","og_type":"article","og_title":"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi - Business Telegraph","og_description":"For John Caudwell, the giveaway was the bespoke diamond ring. One of Britain\u2019s wealthiest men had decided to put his investment in a diamond retailer called Vashi to the test with some mystery shopping. \u201cI asked them to design a ring for me. It was terrible,\u201d says the founder of Phones 4u. \u201cThey claimed to [&hellip;]","og_url":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi","og_site_name":"Business Telegraph","article_published_time":"2024-08-10T11:22:45+00:00","og_image":[{"width":1200,"height":630,"url":"http:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg","type":"image\/jpeg"}],"author":"businesstelegraph","twitter_card":"summary_large_image","twitter_misc":{"Written by":"businesstelegraph","Estimated reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#article","isPartOf":{"@id":"http:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/"},"author":{"name":"businesstelegraph","@id":"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/person\/0a3a6a0f58402f1f2af94e02d0987b78"},"headline":"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi","datePublished":"2024-08-10T11:22:45+00:00","dateModified":"2024-08-10T11:22:45+00:00","mainEntityOfPage":{"@id":"http:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/"},"wordCount":2490,"publisher":{"@id":"https:\/\/www.businesstelegraph.co.uk\/#organization"},"image":{"@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage"},"thumbnailUrl":"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg","articleSection":["Retail"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"http:\/\/www.businesstelegraph.co.uk\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi\/","url":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi","name":"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi - Business Telegraph","isPartOf":{"@id":"https:\/\/www.businesstelegraph.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage"},"image":{"@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage"},"thumbnailUrl":"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg","datePublished":"2024-08-10T11:22:45+00:00","dateModified":"2024-08-10T11:22:45+00:00","breadcrumb":{"@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#primaryimage","url":"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg","contentUrl":"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/08\/The-mystery-of-the-\u2018vanishing-diamond-dealer-fury-in-the.jpg","width":1200,"height":630},{"@type":"BreadcrumbList","@id":"https:\/\/www.theguardian.com\/business\/article\/2024\/aug\/10\/the-mystery-of-the-vanishing-diamond-dealer-fury-in-the-city-after-multimillion-collapse-of-vashi#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.businesstelegraph.co.uk\/"},{"@type":"ListItem","position":2,"name":"The mystery of the \u2018vanishing\u2019 diamond dealer: fury in the City after multimillion collapse of Vashi"}]},{"@type":"WebSite","@id":"https:\/\/www.businesstelegraph.co.uk\/#website","url":"https:\/\/www.businesstelegraph.co.uk\/","name":"Business Telegraph UK","description":"business, tech and industry news","publisher":{"@id":"https:\/\/www.businesstelegraph.co.uk\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.businesstelegraph.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/www.businesstelegraph.co.uk\/#organization","name":"Business Telegraph UK","url":"https:\/\/www.businesstelegraph.co.uk\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/logo\/image\/","url":"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/03\/business-telegraph-LOGO.png","contentUrl":"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2024\/03\/business-telegraph-LOGO.png","width":500,"height":177,"caption":"Business Telegraph UK"},"image":{"@id":"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/person\/0a3a6a0f58402f1f2af94e02d0987b78","name":"businesstelegraph","url":"https:\/\/www.businesstelegraph.co.uk\/author\/businesstelegraph\/"}]}},"_links":{"self":[{"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/posts\/1338788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/comments?post=1338788"}],"version-history":[{"count":0,"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/posts\/1338788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/media\/1338789"}],"wp:attachment":[{"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/media?parent=1338788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/categories?post=1338788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businesstelegraph.co.uk\/wp-json\/wp\/v2\/tags?post=1338788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}