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At Swarovski, family disputes have been part of the business for years. Now a verdict could turn everything upside down

2022-09-22T14:09:36.627Z


The Austrian crystal group does not come to rest. A long-awaited arbitration court ruling could now bring down the new group structure – including the newly installed CEO. All or nothing.


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The old glory is long gone: Swarovski store in Hong Kong

Photo: Ben Marans;

SOPA Images / Light Rocket via Getty Images

The newly appointed Swarovski boss

Alexis Nasard

(56) should have been aware that he was going to eject.

After all, it was no secret that the once brilliant Austrian crystal dynasty was deeply divided when he took office in July.

The fact that the manager, who previously held executive positions at shoe manufacturer Bata or the market researcher Kantar, was caught so quickly must have surprised him.

Nasard may not have received a notice of termination yet.

But a verdict by a court of arbitration set up by the Crystal Dynasty creates new facts in the epic family dispute.

According to information from manager magazin, it declares the entry of the Swiss Swarovski International Holding into Daniel Swarovski KG to be inadmissible because, in the opinion of the judges, the majority for the decision-making process at the time was not sufficient.

The entire group structure is now in question.

The glitter company has long since lost its former glory.

Swarovski has been in decline for years.

Sales recently slumped in double digits.

Instead of lavish dividends for the clan, which now has around 200 members, there were recently three-digit million losses.

In the past year, the majority of the family has initiated a profound restructuring of the crystal empire, including a new structure, new supervision and a new boss.

The entry of the Swiss holding had provided the basis for the radical restructuring - and caused trouble in the clan.

A branch of the family with around 20 percent of the votes had opposed the entry and the associated dilution of their own voting rights, but had not been heard.

Whereupon he - as provided for in the family constitution - lodged an objection with a specially set up arbitration tribunal.

The branch of the family is led by

Christoph Swarovski

, who used to be in the management of the family company.

In view of the verdict, a pacification of the quarreling family now seems a long way off.

The branch of the family, which was pushed out in 2020, now recommends the "persons responsible and their advisors at the time to withdraw immediately from all functions in the Swarovski Group and thus take responsibility for the wrong decisions of the last few years".

When asked on Thursday, the group itself only confirmed that "decisions have been made".

And emphasized that the focus of action is now "the continuity of the company and the long-term protection of Swarovski at all corporate levels and in all markets".

However, opinions differ on how it should look like.

Source: spiegel

All news articles on 2022-09-22

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