Royal Diamond Industries faces court action over $586k it owes supplier
By Lee Su Shyan 19 January 2009
Home-grown Royal Diamond Industries, whose sparkle has waned in recent years, faces being wound up over a sum of $586,000 owed to a supplier.
If gems tycoon Frank Chew, 57 does not pay up before Feb 6, a winding-up order for the company could be made in the High Court.
A related company, Harper Diamond Industries, has already had a winding-up order made against it.
The dispute could spell an end to a well-known name in the diamond business here.
The firm gained a reputation for affordable diamonds, partly because of eye-catching, full-page advertisements touting hefty discounts.
Mr. Chew said he could afford to sell them cheaply because they were bought directly from Belgian wholesalers.
The gems merchant was also known for taking out newspaper advertisements wishing the nation happy birthday every National Day. The most recent one in The Straits Times was in 2006.
Mr. Chew’s problems now are with a Singapore-registered company and diamond supplier, Diasqua.
Diasqua’s winding-up action has its roots in a 2007 agreement where it signed a settlement with Diamond Industries over a disputed sum of $1.15 million.
The settlement agreement involved Diamond Industries passing the proceeds of $564,000 from the sale of two units at Emerald Park condominium near Havelock Road to Diasqua.
The remaining amount of $586,000 was to be repaid to Diasqua in monthly instalments of $50,000.
While the proceeds from the properties were transferred, no monthly instalments were made and, eventually, the court entered judgment against Diamond Industries late last year, ruling that the $586,000 be paid with interest and costs.
When the sum was still unpaid, a winding-up petition was slapped on Diamond Industries earlier this month. This will be heard on Feb6.
Mr. Chew was not at his bungalow in Upper Bukit Timah when The Straits Times visited his home.
His lawyers, Asia Law Corporation, declined comment.
Mr. Chew set up Diamond Industries in 1989, locating the showroom in Paya Lebar and providing shuttle buses to bring in customers.
By offering attractive prices, Mr. Chew was said to have grabbed about a quarter of the diamond market in Singapore in his heyday - with an annual turnover of about $20 million.
Sources said that he started taking more of a backseat in the business after he was shot in the abdomen when thugs tried to steal his sports car in Malaysia in 2001.
Race-car driver Ringo Chong and Mr. Chew’s brother were also shot.
Others noted that the redevelopment work at Paya Lebar for the Circle Line also affected the flow of customers to his showroom.
Although it reopened in 2006 after being closed for nearly a year, some customers may have stayed away.
One of its largest retail outlets, at Scotts Shopping Centre, was also closed in 2006 after the site was sold for redevelopment.
Diamond Industries, which focused on affordable but high-end diamonds, may have lost out to other local competitors who rebranded themselves and went for more mass-market jewellery for the younger working woman.
Mr. Chew’s daughter Olivia took over the reins and in 2006 opened an outfit in Orchard Parade Hotel and another at The Cathay to sell more contemporary jewellery.
These have closed, apparently to focus more on the wholesale side of the business.
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Diamond Firm May Wind Up
Royal Diamond Industries faces court action over $586k it owes supplier
By Lee Su Shyan
19 January 2009
Home-grown Royal Diamond Industries, whose sparkle has waned in recent years, faces being wound up over a sum of $586,000 owed to a supplier.
If gems tycoon Frank Chew, 57 does not pay up before Feb 6, a winding-up order for the company could be made in the High Court.
A related company, Harper Diamond Industries, has already had a winding-up order made against it.
The dispute could spell an end to a well-known name in the diamond business here.
The firm gained a reputation for affordable diamonds, partly because of eye-catching, full-page advertisements touting hefty discounts.
Mr. Chew said he could afford to sell them cheaply because they were bought directly from Belgian wholesalers.
The gems merchant was also known for taking out newspaper advertisements wishing the nation happy birthday every National Day. The most recent one in The Straits Times was in 2006.
Mr. Chew’s problems now are with a Singapore-registered company and diamond supplier, Diasqua.
Diasqua’s winding-up action has its roots in a 2007 agreement where it signed a settlement with Diamond Industries over a disputed sum of $1.15 million.
The settlement agreement involved Diamond Industries passing the proceeds of $564,000 from the sale of two units at Emerald Park condominium near Havelock Road to Diasqua.
The remaining amount of $586,000 was to be repaid to Diasqua in monthly instalments of $50,000.
While the proceeds from the properties were transferred, no monthly instalments were made and, eventually, the court entered judgment against Diamond Industries late last year, ruling that the $586,000 be paid with interest and costs.
When the sum was still unpaid, a winding-up petition was slapped on Diamond Industries earlier this month. This will be heard on Feb6.
Mr. Chew was not at his bungalow in Upper Bukit Timah when The Straits Times visited his home.
His lawyers, Asia Law Corporation, declined comment.
Mr. Chew set up Diamond Industries in 1989, locating the showroom in Paya Lebar and providing shuttle buses to bring in customers.
By offering attractive prices, Mr. Chew was said to have grabbed about a quarter of the diamond market in Singapore in his heyday - with an annual turnover of about $20 million.
Sources said that he started taking more of a backseat in the business after he was shot in the abdomen when thugs tried to steal his sports car in Malaysia in 2001.
Race-car driver Ringo Chong and Mr. Chew’s brother were also shot.
Others noted that the redevelopment work at Paya Lebar for the Circle Line also affected the flow of customers to his showroom.
Although it reopened in 2006 after being closed for nearly a year, some customers may have stayed away.
One of its largest retail outlets, at Scotts Shopping Centre, was also closed in 2006 after the site was sold for redevelopment.
Diamond Industries, which focused on affordable but high-end diamonds, may have lost out to other local competitors who rebranded themselves and went for more mass-market jewellery for the younger working woman.
Mr. Chew’s daughter Olivia took over the reins and in 2006 opened an outfit in Orchard Parade Hotel and another at The Cathay to sell more contemporary jewellery.
These have closed, apparently to focus more on the wholesale side of the business.
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