Lab Grown Firm Fighting Off Insolvency
August 20, 24
(IDEX Online) - Lusix, the lab grown company behind Sun Grown Diamonds, is seeking court protection from creditors amid plunging prices.
It was founded in 2016 by Israeli billionaire Benny Landa, the "father of commercial digital printing" who sold his company Indigo to HP for $830m.
Lusix, which reportedly has around $28m of debts, has asked a court in Israel for a stay of proceedings as it fends off the threat of insolvency.
It says it needs six weeks to complete a merger to secure its future, according to the business news website Ctech.
Lusix's request to the court blames a 90 per cent drop in lab grown prices for its demise, together with a crowded marketplace and the lingering effects of the Covid pandemic.
Landam chairman of Lusix, told the website: "Lusix was established to bring the leadership of the diamond sector back to Israel. There is no shame in trying and reaching this situation.
"I am very proud of the company and hope that it will succeed in embarking on a new path."
He has invested approximately $60m of his own money in the company. In 2022 LVMH led a $90m funding round.
Lusix has temporarily closed its factory in Modi'in, central Israel, and put 60 of the 90 staff on unpaid leave.
Pic shows Benny Landa and Lusix diamonds.