When it comes to luxury brands, Hermes is undoubtedly one of the most prestigious and sought-after names in the world. The French fashion house, known for its iconic Birkin bags, silk scarves, and high-end clothing lines, has been captivating fashion enthusiasts for decades.
But have you ever wondered who owns this esteemed brand? In this article, we’ll delve into the ownership of Hermes and shed some light on the company’s history.
History of Hermes
Hermes was founded in 1837 by Thierry Hermès as a harness workshop in Paris. The brand quickly gained popularity for its high-quality leather goods and accessories, such as saddles and bridles for horses. Over time, the company diversified its product range and started producing luxury goods for humans, including handbags, scarves, jewelry, watches and more.
The Family Ownership
For many years Hermes remained a family-owned business with Thierry Hermès’ descendants at the helm. However, in 2010 LVMH (Louis Vuitton Moet Hennessy) acquired a 17% stake in Hermes through stock options that it had accumulated over time. This move was not well-received by the Hermès family who were fiercely protective of their brand’s independence.
The Battle between LVMH & Hermes
The acquisition sparked a long-standing feud between LVMH and Hermes that lasted several years. The Hermès family accused LVMH of attempting to take over their company without permission or authorization from shareholders.
In response to these allegations, LVMH denied any wrongdoing and claimed that it had no intention to acquire control of Hermes. Eventually, after much legal wrangling between both companies, LVMH agreed to sell off most of its shares in Hermes.
Current Ownership Status
Today, Hermes remains largely family-owned. The company is managed by a group of family members who sit on the supervisory board, including Pierre-Alexis Dumas, Bertrand Puech, and Axel Dumas.
Collectively, the family holds over 50% of Hermes’ shares and controls around 70% of voting rights in the company. This means that they retain a significant amount of control over the brand’s operations and decision-making.
Conclusion
In conclusion, while Hermes may have had a brief flirtation with outside ownership through LVMH, it remains predominantly a family-owned company to this day. The Hermès family’s commitment to maintaining their brand’s independence has allowed them to maintain their high standards of quality and craftsmanship over the years. With this level of control, it is safe to say that Hermes will continue to remain one of the most coveted luxury brands in the world for many years to come.
- Key Takeaways:
- – Hermes is a French fashion house known for its luxury goods
- – The company was founded in 1837 as a harness workshop
- – Hermes is mostly family-owned with over 50% shares held by the Hermès family
- – LVMH acquired a 17% stake in Hermes in 2010, leading to legal battles between both companies
- – The Hermès family fought hard to maintain their brand’s independence from outside ownership