An online diamond seller, Enchanted Diamonds based in New York, has filed for Chapter 7 bankruptcy as it faces allegations of owing a total of $1.8 million in debt.
The debts accumulated by Enchanted Diamonds amount to around $1.8 million, leaving many customers with substantial financial losses. The trend of purchasing high-value items like diamonds online has become more common nowadays, despite the risks involved.
With the bankruptcy filing, the southern district of New York’s bankruptcy court has disclosed a list of unsecured creditors, with many individuals being owed tens of thousands of dollars. For instance, one customer from California who thoroughly researched their purchase before buying a diamond for their partner is owed $10,300. Another customer from California is owed a substantial amount of $101,880.
The situation escalated when customers reported that they were not receiving the diamonds they had purchased, prompting the Better Business Bureau (BBB) to issue a consumer alert regarding Enchanted Diamonds. Additionally, the BBB revoked their accreditation for the company, which not only operates online but also has a physical store in New York.
