We all know the beloved Tiffany & Co. steals our hearts with the most beautiful of jewelry, but what we didn’t know is that they got left at the altar.
David Brown with Business Wars Daily, “LVMH Scraps $16 Billion Deal, Leaving Tiffany at the Altar,” talks all about this abandonment and how Tiffany & Co. reacted. After planning to partner up with the LVMH, a world leader in all things luxury, back in December with a $16 billion deal, they thought everything was going smoothly for them and they were finally going to have their seat at the table next to companies like Fendi, Louis Vuitton, and Berluti. Everything seemed to work out for both parties. LVMH would have the fancy Tiffany & Co. under their belt and Tiffany would have the financial backbone they needed. But in the end, it did not work out in their favor. After multiple obstacles getting in their way – like the United States deciding to put a 25% tariff on all French products after the French deciding to tax U.S. technology companies – LVMH and Tiffany called it quits.
The pandemic didn’t help in terms of the deal. Because of the United States’ urge to protect themselves against the virus, they temporarily shut down stores and malls, making Tiffany & Co. not able to make great sales alongside almost everyone. But not only did Tiffany lose sales, but she lost the biggest transaction of her career. Filing a lawsuit against LVMH, she hopes to get together and pick up where they left off.
What are your thoughts on the jeweler’s recent abandonment? Let us know!
This article originally published on GREY Journal.