Newport Beach-based jeweler Lugano Jewelry has begun a new phase following its acquisition by private investment firm Middle West Partners and a collective of long-standing customers. Finalized on September 30, this deal introduces new ownership to the luxury brand after a challenging period marked by financial scandals, bankruptcy, and leadership shifts.
This takeover provides Lugano with a chance to restore trust while upholding its legacy of fine gemstones and artisanal craftsmanship. The agreement, which follows a court-overseen Chapter 11 restructuring, sets the stage for future growth. Specific financial terms of the deal remain undisclosed.
Background
Established over two decades ago by Moti and Idit Ferder, Lugano cultivated an elite clientele through bespoke jewelry designs and tailored service. Its growth accelerated when Compass Diversified acquired a 60% stake for roughly $300 million. By 2022, annual revenue surpassed $200 million, highlighting its success in the U.S. luxury jewelry sector.
However, significant financial issues soon surfaced. Co-founder Mordechai “Moti” Ferder stepped down amid an internal probe into accounting discrepancies, while disputes tied to alleged diamond financing schemes led to lawsuits totaling approximately $32.2 million.
New Leadership
Former interim CEO Josh Gaynor has been appointed as permanent chief executive and will join Lugano’s board. Gaynor’s extensive luxury industry experience includes senior roles at Bottega Veneta, Fendi, and oversight of Bulgari’s North American high jewelry division.
During his tenure, Gaynor has sustained client demand, strengthened existing ties, and drawn new customers despite the company’s financial turmoil. The new owners plan to maintain current operations without major disruptions. Lugano’s jewelry will continue to be crafted by hand at its Newport Beach facility.
Its retail locations in Newport Beach, Aspen, Ocala, and Miami, along with its mobile equestrian boutique, will stay open. Middle West Partners, whose luxury portfolio includes David Webb and Paul Stuart, aims to pursue measured growth while preserving Lugano’s signature customer experience.
In a comparable scenario, another luxury brand rebounded from financial distress by focusing on core values and rebuilding customer trust. This strategy enabled the brand to regain momentum and appeal to a new audience. Similarly, Lugano’s success will hinge on retaining loyal patrons while attracting new clientele. Expanding its customer base is key for future growth.
