Swatch has ended its watch-making partnership with Tiffany & Co, alleging the American jeweller has hindered the progress of the luxury watch division.
This content was published on
1 minute
swissinfo.ch and agencies
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.
Popular Stories
More
Aging society
No house generation: the impossibility of buying property in Switzerland
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swatch increases profit despite strong franc
This content was published on
But it warned that the strong Swiss franc would hit sales growth as well as group operating profit and net income. “The outlook… in the second half of the year remains promising, particularly given the fact that July is confirming the trend in sales and results of the first half,” Swatch Group said in a…
This content was published on
Comco said on Wednesday that the purpose was to determine whether Swatch Group’s decision was an abuse of its dominant market position, and thus in violation of the law against cartels. Swatch Group said in a press statement that it had initiated the investigation itself. The aim was to find a mutually agreable solution to…
This content was published on
Grégory Pons, a French Geneva-based journalist specialising in the watch industry, tells swissinfo.ch that despite the Swatch Group’s success – record key figures for 2010 have already been released – challenges lie ahead. Pons is editor of an international newsletter for watchmaking professionals and jury member of the Grand Prix d’Horlogerie, a competition for high-end…
This content was published on
The patriarch of the Swiss watch industry, Nicolas G. Hayek, passed away on June 28, 2010, at the age of 82. He was the founder and most recently the chairman of the Swatch Group, and was often cited as the saviour of the Swiss watchmaking industry. (Pictures: RDB and Keystone)
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.