John Caudwell, founder of Phones 4u and one of Britain’s wealthiest men, invested £1m in diamond retailer Vashi at the behest of its founder, Vashi Dominguez. However, after a disappointing experience with Vashi’s customer service and design, Caudwell began to question the company’s claims and requested further information before investing more money.
Vashi, known for its disruption of the diamond trade by offering ethically sourced, recycled diamonds at affordable prices, attracted a number of high-profile investors over the years. Dominguez, a charismatic jeweler with a successful track record in the industry, grew the business from an online operation to physical stores in prime locations, winning awards and accolades along the way.
Despite promising growth and potential, Vashi recently collapsed, leaving investors with an estimated loss of £170m and unanswered questions about missing stock and the whereabouts of Dominguez. The liquidation of the company has sparked investigations, with private investigators hired to locate Dominguez.
Dominguez’s background, including a successful early career in diamond trading, and his flashy lifestyle, with luxury cars and lavish family holidays, added to the allure of the Vashi brand. However, concerns were raised by some investors about the lack of financial transparency and governance within the company.
Investors such as Michael Spencer, Mahmud Kamani, and William Jackson were among those who backed Vashi, with mixed experiences and varying levels of investment. Despite promising metrics and growth projections, the collapse of Vashi has left investors like Caudwell questioning the due diligence process and seeking answers about the future of their investments.
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