Middle West Partners Acquired Luxury House Lugano
The jewelry brand has exited Chapter 11 bankruptcy and will maintain its headquarters and workshop in Newport Beach.
Updated on Oct. 12, 2026 in Jewelry
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Luxury jewelry house Lugano has been acquired by the New York-based Middle West Partners following a court-supervised Chapter 11 bankruptcy process. The brand will continue to operate its headquarters and handcrafted production workshop in Newport Beach under the leadership of CEO Josh Gaynor.
Why it matters
The acquisition marks a major transition for the brand, which faced legal challenges regarding diamond-financing arrangements and internal investigations into accounting irregularities. The restructuring allows the company to move past a period of financial instability that included $32.2 million in damages sought by plaintiffs.
Lugano maintains 75 employees across four U.S. boutiques and a mobile equestrian unit, with signature pieces retailing for over $100,000. In 2022, the company reported $200 million in annual sales, marking a 61% increase.
The players
Middle West Partners
This New York-based firm is the new owner of the luxury-jewelry brand Lugano.
Lugano
A luxury-jewelry house that maintains its headquarters and handcrafted jewelry production in Newport Beach.
Josh Gaynor
He serves as the permanent CEO of Lugano and is overseeing the brand following its reorganization.
Compass Diversified
An investment firm that previously held a 60% stake in Lugano before the company bankruptcy filing.
Gordon Brothers
An affiliate of this firm entered an agreement to help purchase and finance inventory and operate stores for Lugano.
The details
The reorganization process involved an agreement with an affiliate of Gordon Brothers to manage inventory and store operations. The company previously saw a 60% stake acquired by Compass Diversified five years ago, which later recorded a $184 million accrual related to the firm.
Timeline
Lugano was founded in Newport Beach 20 years ago.
Compass Diversified acquired a 60% stake in Lugano 5 years ago.
The firm reported a 61% jump in sales in 2022.
Lugano filed for Chapter 11 bankruptcy in November 2025.
Compass Diversified recorded a $184 million accrual on June 30, 2025.
Culture Shift
The acquisition by Middle West Partners reflects a broader trend of private equity intervention in high-end luxury retail during periods of financial distress. This shift moves Lugano away from its previous ownership model toward a streamlined corporate structure focused on maintaining high-value craftsmanship.
Local residents and boutique clients can expect operations at the Newport Beach workshop to continue without interruption. The brand maintains its status as a significant local employer, keeping its current staff of 75 people based at the headquarters.
The takeaway
The successful acquisition provides a path forward for the brand after significant legal and financial turmoil. Luxury consumers should note that the company remains committed to its original Newport Beach-based handcrafted production model.
Further reading
For more on local luxury markets, visit the Jewelry section.
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