We don’t always expect love in the luxury world with the odd stoush between luxury companies from time to time.
This time it is between Swatch Group and Tiffany & Co. where it’s watches drawn at five paces..
Swiss watchmaker Swatch have been slapped with a lawsuit by US jeweller Tiffany & Co., but claim that the company have no legal basis and will contest.
AFP reports that a counter-claim by Tiffany for $US589 million “has no factual or legal basis and will be vigorously contested by Swatch Group and Tiffany Watch Co. Ltd.,” a statement said.
What is the… or should we say what was the relationship between the two companies?
Tiffany Watch is an affiliate of Swatch that was established in 2008 in cooperation with the US firm.
In September 2011 however, Swatch broke off a cooperation agreement with Tiffany & Co. for “breaches of its obligations and duties,” and sought compensation of 3.8 billion Swiss francs in damages.
Swatch said it had invested “millions to develop, distribute and sell Tiffany & Co. watches” but that the venture was undermined by “systematic efforts to block and delay development of the business” by Tiffany & Co.
Tiffany has alleged that Swatch broke its promises and failed to provide appropriate distribution for Tiffany-branded watches, depriving it of the increase in watch sales and royalty income it had been seeking.
Zurich bank ZKB analysts are unsure of which company will come out on top.
Image credit: jewelleryworld.net.au
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