Nicolas Puech, an heir to the French luxury brand Hermès, has filed a lawsuit claiming his 6 million company shares, valued at approximately $13 Billion, have disappeared.
Puech made headlines last year for his reported plan to bequeath half his fortune to a former gardener. Court filings revealed that the 81-year-old Puech no longer owns the hefty 6 million Hermès shares.
According to Swiss investigative news outlet Gotham City, he alleges that his former wealth manager, Eric Freymond, whom he employed for over two decades, contributed to this loss. A Swiss court dismissed Puech's allegations earlier this month, stating that the purported fraud was "undetectable to common mortals," according to Bloomberg.
A Fashion Dynasty In Disarray
The Swiss news outlet Tribune de Genève reported that the stock was placed in a Geneva bank in 2012. However, the current whereabouts of the shares remain unknown. Geneva's Public Prosecutor's Office previously dismissed Peuch's allegations, a decision upheld by a court ruling on July 24.
In a statement, Peuch's lawyers, Grégoire Mangeat and Fanny Margairaz, told Business Insider that they were "in the process of studying the criminal file in detail." They declined to comment further.
Lawyers for Freymond have yet to respond to BI's request for comment. While details surrounding Nicolas Puech might seem scarce, the figure at the centre of this legal storm warrants closer examination.
Who Is Nicolas Puech?
Nicolas Puech is a prominent figure in the world of high fashion, inheriting a legacy as a fifth-generation descendant of Thierry Hermes, the founder of the eponymous luxury brand.
He stepped down from Hermes' supervisory board in 2014 but maintained a substantial 5 percent stake in the company. While other family members collectively hold a majority share, Puech's position as a significant shareholder underscores his influence within the fashion empire.
The complex relationship between Hermes and LVMH has been a subject of industry scrutiny for years. In a dramatic turn of events, the two luxury giants settled in September 2014, ending a four-year dispute when LVMH quietly amassed a 23 percent stake in Hermes.
The agreement stipulated that LVMH would distribute its Hermes shares to its own shareholders, effectively ending the threat of a hostile takeover. The secretive accumulation of LVMH's stake ignited speculation that its CEO, Bernard Arnault, was plotting a hostile takeover of Hermes.
This unprecedented move sent shockwaves through the luxury industry, underscoring the fierce competition between these two fashion titans. According to Forbes, Puech's net worth was $13.5 billion as of July 31, 2024.
Puech, an 81-year-old without children, previously held a significant 5.7 percent stake in Hermès, making him the company's largest individual shareholder, according to a report by the Tribune de Geneve. This substantial ownership position further solidified his influence within the luxury fashion house.
Hermes: A Global Fashion House
From its humble beginnings as a horse saddle maker in 1837, Hermes has ascended to unparalleled heights as a global symbol of luxury. The brand's enduring appeal is evident in its ability to navigate economic challenges, as showcased by its consistent sales in the otherwise slumping Chinese luxury market.
Before he decided to adopt and subsequently bequeath his vast fortune to a former employee, Puech had designated his inheritance to the Isocrates Foundation, a non-profit organization he established to support public-interest journalism. This philanthropic endeavour reflects his commitment to social causes and the power of information.
The future of the Isocrates Foundation now hangs in the balance. The foundation's decision in November 2023 to cease accepting new funding requests has raised concerns about its long-term viability.
As the story of the French billionaire heir unfolds, questions linger about the future of the Hermes empire and the fate of his philanthropic endeavours. The implications of this unexpected move are far-reaching and will undoubtedly be the subject of much speculation and scrutiny.
