Ding Ding Ding! Hermes VS. LVMH

If you've been reading up on your WWD lately you are following some serious drama in the industry between the Hermes family and LVMH. And if you have not, let me break it down for you because this is some JUICY soap-like drama going on!

It's time for a SHOWDOWN! 

The Scene: a sunny October day, light wind, silk brocade jacket season, Hermes is holding a private garden party for the family and a few close friends.
A few miles away, LVMH was....well it's not sure how they did this but the French government is working on finding out!

The Situation: In October Hermes was SHOCKED by LVMH's announcement of buying a 17% stake in Hermes, which had no intention of letting their stock to be bought up by any major holding company. Since then LVMH has stated no intent of a hostile takeover "in the next 6 months."

Thierry Hermès, I don't think he ever saw this one coming...

The Hermes family in response stated,

"The family has clearly and unanimously said: If you want to be friendly, Mister Arnault [LVMH's CEO], you need to withdraw."

The family has also taken out full-page ads in newspapers all across France asking for support from their customers and affiliate companies for the perseverance of their "cultural heritage."

The next move was made by the Hermes family, funneling a majority of their 71% hold on Hermes into a non-listed holding company, to avoid LVMH to get their hands on it. HOWEVER, French laws state when a company pools over 1/3 of their shares they are obligated to hold a public offering. That would in turn ruin their plan to AVOID any kind of offering.

Hermes has asked to be exempted to this law, as French investigation of LVMH's purchase continues. AMF (the French governing council on this law) is expected to reach a decision in the coming weeks on the exemption request.

FREE BIRKINS FOR EVERYONE IN THE FRENCH GOVERNMENT WHO HELPS HERMES! no?

For the most part LVMH has remained silence throughout the verbal attacks. Yesterday though they finally reacted to a request by a French investigator for more information about LVMH's purchase of Hermes stock. LVMH vice-chairman, Pierre Gode, reacted with this open letter, which is clearly accusing the government of taking Hermes' side.

"You recently informed me of the mission you have been entrusted with to launch a campaign against LVMH and its executives...You will understand that we are under no obligation to respond to your unfounded queries, the purpose of which is only too obvious."

It will be interesting to see what happens in the future with this case and the laws applying to the fashion industry in France, updates to come!!

Anything specific you want to know? Comment below or e-mail me!

Hermes to LVMH: WITHDRAW
Hermès Asks to Be Exempted From Trade Regulations