The descendents of Puech, Dumas, and Guerrand families of Thierry Hermes, own 73 percent of the French retailer of luxury goods whose intension is to keep the business for themselves. In particular, the concern of the family is over 20 percent of stake developed steadily by LVMH Moet Hennessy. They claim that the families are good enough to strengthen their fortress, with heightened wall without outside investors.
Bertrans Puech, chairman of Hermes International announced in Monday’s edition of Le Figaro, French daily that the Hermes families called for LVMH, who has 20 percent as shareholder in the company, to sell half of its stake. He also accused Chairman and Chief Executive Bernard Arnault of LVMH, of gradually taking over the control of the company. But the family is determined to keep control of the company as they are the descendents of its founders.
Patrick Thomas, Chief Executive of Hermes said that there is growth in sales this year, though it is slower than last year. They would be very careful and sensible in their approach to keep their grip on the company without being excited with the uncertainties of economic situation of Japan, effects of exchange rate, and macroeconomic volatility’s risks. Hermes also claims to be one of the oldest family owned companies in France, with perfection which prompts a desire from housewife to fashionista.
A takeover of Hermes means the sound finances of Bernaud Arnault’s LVMH wuld only stabilize further. It appears for Arnault, that there is sufficient time to work out with Hermes. They could wait for the mind change of the family members desperately regarding selling of ownership shares. Hermes family’s attempt to hire law firm to convince and advice in all possible ways LVMH to sell its stake is already known.