Swatch has ended its watch-making partnership with Tiffany & Co, alleging the American jeweller has hindered the progress of the luxury watch division.

The Biel-based group accused Tiffany of breach of contract, citing “systematic efforts to block and delay development” of the Swatch-owned Tiffany Watch division.

Swatch said in a statement on Monday that it would seek damages against Tiffany for loss of future business.

Swatch and Tiffany formed their partnership in 2007 to further the development, production and worldwide distribution of Tiffany brand watches. All the design and manufacturing took place in Switzerland while the products were being sold through Swatch and Tiffany retail outlets. 

The case will be heard in a Dutch court. Both parties agreed to have it heard in a third country.

Tiffany Watch will wind up its affairs within two years, Swatch said. 

Swatch chair of the board of directors, Nayla Hayek, was previously quoted by Reuters news agency as saying Tiffany was not doing enough to promote the division's watches.

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