Core Insights - Luxury spending is showing signs of decline, with only 47% of luxury consumers planning to spend the same or more in the next three months, marking an 11 percentage point drop since April 2023 [1] - Despite the economic downturn, higher-income consumers have been relatively resilient, but there is a noticeable shift towards more cautious discretionary spending [2][8] - Global luxury spending is under pressure due to economic uncertainties, geopolitical tensions, and market volatility, although there was a positive end to 2024 for the luxury sector driven by tax-free spending in Europe [3] Company-Specific Insights - Lugano Diamonds & Jewelry has filed for Chapter 11 bankruptcy protection and is planning to sell the company while continuing its operations [4][5] - The company has initiated a court-approved sale process for its assets under Section 363 of the U.S. Bankruptcy Code [6] - Enhanced Retail Funding has agreed to support Lugano's operations during the sale process and will act as the stalking horse bidder [7]