Tuesday, 7 December 2010

Hermes Prepares to Strike Back Against LVMH Empire... 07/12/10

The situation at Hermes is keeping us fascinated here at the MO Down. Following up on our recent coverage, the Dumas family met on Friday (December 3) to discuss their battle strategy. For those of you just tuning in, we are of course referring to the recent controversy that arose when LVMH revealed its ownership of a 17.1 per cent stake in Hermes. It was quite an unwelcome surprise to the family-owned Hermes, which is now faced with the possibility of a gradual takeover. The Dumas family aren’t happy, and to be honest, neither are many people. Hermes shares fell 9.3 per cent on Friday, and something tells us this was no coincidence.

Currently, the Puech, Guerrand and Dumas families own a combined stake of 73 per cent– no one is taking over anything without their permission. However, the families are hunting for a strategy to allow them to sell shares as needed, without allowing LVMH boss Monsieur Arnault to increase his holding. Hermes is not keen to join the family owned brands that have fallen to the conglomerate. It stands firm as a house of artisans, before businesspeople. Several schemes are in the works at the moment, and we will bring more as soon as we hear…

Image credit: http://retail-guru.com

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au