"If you want to seduce a beautiful woman, you don't start by raping her from behind..." Strong words from Patrick Thomas, the 6th generation CEO of the Hermes family business. As many of you know, the multi brand luxury conglomerate, LVMH, has secretly acquired 20 percent of the Hermes holdings. With the Hermes family holding another 70 percent between its different branches, and the remaining 10 still out there, the family has banded together, and is holding firm that they will remain in control of the company.
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| Inside Hermes Birkin... |
The acquisition happened gradually, in October LVMH announced that it had gained 17 percent through different deals, and within the month it had gained 3 more, at which time Hemes asked politely, as is done in the old French manner, to stand down. M. Bernard Arnault, said flatly, they "have no intention" of selling their shares, and losing what they had gained.
Arnault is a strong business man, and has done wonders in the fashion industry, taking the grand old houses, and reestablishing them on top. But at what cost? Hermes see's what LVMH (Louis Vuitton, Moet, Hennessey) does as crass, and undermining to the reputation of the luxury goods industry. For example, part of the revitalisation of Dior, consisted of $600 jacquard Logo totes, which in Hermes logic cheapened the brand... "If you told me to double Hermes sales by tomorrow, I could do it, but in 3 years, there would be no more Hermes..." Thomas said. He also "thought out loud" at a press conference held in Paris yesterday, that it would be in the families best interest to delist the company from the French stock exchange.
This will be an ongoing battle of the LUXURY scions, and I will do my best to keep you posted! Drama is a brewing!
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