Secrets Shhh, Ethical Lab Grown Retailer, Collapses

(IDEX Online) - A retail chain that promoted lab growns as an ethical alternative to natural diamonds has collapsed in Australia.

Secrets Shhh, founded in 2000, entered voluntary administration on 10 December. The business continues trading as normal, where stock is available, but is seeking a possible sale or recapitalization.

The company was relatively small chain, with 23 stores and an online presence, but it was one of Australia's few retailers focused on lab-grown and simulated diamonds. It advertising focused on lab growns as a "sustainable alternative to mined diamonds".

Its demise comes as the lab grown diamond sector faces significant market upheaval. Prices are plunging due to oversupply and there are signs that consumer enthusiasm may be stabilizing or retreating from earlier peaks.

Administrators from FTI Consulting have not, however, publicly attributed the collapse to lab grown market dynamics.

Mike Parsell, former CEO of Michael Hill International, the largest jewelry chain in Australia, took a majority stake in Secrets Shhh in 2017 and became managing director.

A first meeting of creditors has been scheduled for Friday, 19 December.