Lugano Diamonds & Jewelry has voluntarily filed for Chapter 11 relief to facilitate a sale of its business.

The high-end jewelry retailer is seeking court approval to commence a value-maximizing sale process for substantially all of its assets. Investment firm Enhanced Retail Funding has agreed to serve as the stalking horse bidder for the sale.

The proposed transaction remains subject to higher and better offers and other customary conditions. The company expects to conduct an auction if it receives additional qualified bids. 

The retailer will continue to operate as usual during the Chapter 11 process, with support from Enhanced Retail Funding.

“Lugano has worked extensively to prepare the business for this process, and I look forward to helping guide the company through the steps ahead,” said J Michael Issa of GlassRatner, who is serving as chief restructuring officer of Lugano. 

“I am committed to working closely with the management team and company advisors during this period to assess the best path forward.”

Founded in 2004, Lugano has boutiques in Newport Beach, Aspen, Palm Beach, Ocala, Houston, Washington, DC, Greenwich, and Chicago.