The jewellery retailer Vashi has collapsed into administration, leaving investors nursing losses estimated at £170 million and raising questions over the whereabouts of diamonds and jewellery once valued at £157 million. The company, founded by Vashi Dominguez, had attracted investment from high-profile entrepreneurs including Phones 4u founder John Caudwell and Charles Tyrwhitt founder Nick Wheeler.
Caudwell, who invested £1 million in the company, became suspicious after a mystery shopping visit to Vashi's flagship Covent Garden store. He claims the design service was poor and that foot traffic did not match sales claims. He also alleges that a promised donation to his charity, Caudwell Children, was never made. When he sought more detail on a request for an additional £2 million, he says the company became irritable and he declined.
Dominguez, born in Tenerife in 1978, built his business from selling imported electronics to trading diamonds. He claimed to have made his first million-pound profit at age 23 by acquiring stock from struggling businesses. He later established Diamond Manufacturers in 2007, which became the holding company for Vashi. The brand positioned itself as a disruptor in the diamond trade, offering ethically sourced, recycled diamonds at lower prices through online sales and physical stores in prime London locations.
Despite media appearances and a high-profile store in Covent Garden, the company's financial troubles have now come to light. Liquidators have been appointed, and investors have hired a private investigator to locate Dominguez, who has not been seen since the collapse. The fate of the missing stock remains unclear, and the City is left with unanswered questions about the company's operations and Dominguez's whereabouts.
