News, The Business
Them is Fightin’ Words: Hermes Tells LVMH to Back Off
By Lauren Sherman
Execs at Hermes told French newspaper Le Figaro that they aren’t happy about LVMH’s sudden interest in the luxury group.
“The family has clearly and unanimously said: If you want to be friendly, Mister Arnault, you need to withdraw,” said Bertrand Puech, a fifth-generation descendant of founder Thierry Hermes.
LVMH denies that they’d like to acquire the company, of which they bought over $2 billion in shares last month. But it’s obvious that a hostile takeover isn’t completely out of the question.
Hermes clearly doesn’t want to be a part of a large conglomerate. (Its other brands are John Lobb, a very high-end shoemaker, and a Chinese luxury label called Shang Xia.) “This culture (of craftmanship and strong traditions) is hardly compatible with one of a big group. It is not a financial battle, it’s a cultural battle,” said Hermes CEO Patrick Thomas.
Translation: Quality will diminish if LVMH gains control.
Again, we want to reiterate that LVMH CEO Bernard Arnault says he has no interest in taking over the company. But Hermes is calling his bluff. Let the battle begin.
Tags: Bernard Arnault, Bertrand Puech, Hermes, LVMH, Patrick Thomas
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ZOMFGOMFGOMFOMGFOGM……….FOGMSIODGAKTJHFADPIOJ!!!!!!!!!!!!!!!!!!!!!!!
Yoooooooooooos Hermes!!!!!!! I expected nothing less of you…!!!
*spins around rapidly in circles*
*foams at mouth*
*falls to the floor in dizzy tizzy*
I don’t think it is in LVMH’s interest to participate in a hostile takeover. They’d lose prestige and credibility with their customer base. Vuitton has done a remarkable job convincing its worldwide customer that they’re designed and produced in Paris, perhaps with a picturesque factory outside the city. This would not serve to paint the company in a good light, nor would it allow the Hermes brand to go untarnished. They’d most certainly still end up making more money, but as mr Puech said, it’s a cultural war, not a financial war.
I don’t think it is in LVMH’s interest to participate in a hostile takeover. They’d lose prestige and credibility with their customer base. Vuitton has done a remarkable job convincing its worldwide customer that they’re designed and produced in Paris, perhaps with a picturesque factory outside the city. This would not serve to paint the company in a good light, nor would it allow the Hermes brand to go untarnished. They’d most certainly still end up making more money, but as mr Puech said, it’s a cultural war, not a financial war.
Bump all of that….how would VUITTON lose credibility? If anything, Hermes would merely be another notch in their very wide belt. They certainly wouldn’t diminish their own shine (however artificial it may be) by branding the Hermes name on par with its own.
If anything, Hermes would be the company to suffer in this endeavor.
And to that end………I know people are freakin scared to admit it, but does anyone else not see that Mr. Jacobs, as much as I love him, sold out a long ass time ago?
Bump all of that….how would VUITTON lose credibility? If anything, Hermes would merely be another notch in their very wide belt. They certainly wouldn’t diminish their own shine (however artificial it may be) by branding the Hermes name on par with its own.
If anything, Hermes would be the company to suffer in this endeavor.
And to that end………I know people are freakin scared to admit it, but does anyone else not see that Mr. Jacobs, as much as I love him, sold out a long ass time ago?
Well obviously Hermes would be an extremely prestigious acquisition (or they wouldn’t be trying) but LVMH surely isn’t interested in publicly wrenching a much beloved company from the hands of the founding family. they may not care about doing it, but they would certainly want to do it covertly.
As for MJ, I can only speak for myself in saying that I admire his shamelessness. Whether he’s being criticized for being inspired by other designers or ‘selling out’, he’s always the first to own up to the controversy and laugh it off. To me, he won’t have sold out until hes hosting a project runway knock off show like Isaac ‘Terrible Person Mizrahi.
Ian/Bon,
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They are fighting words from Hermes and it is a cultural battle. Clearly Arnault wants at least one seat on the Board. Interesting to see what happens next….