Swatch Group announced today that it has terminated its cooperation contracts with Tiffany & Co. According to Swatch Group, “This action became necessary following Tiffany & Co’s systematic efforts to block and delay development of the business.”
Within the framework of a long-term partnership agreement, Swatch Group founded Tiffany Watch Co. Ltd. in Spring 2008. The new company was responsible for the development, production and distribution of “Tiffany & Co.” branded watches. Worldwide sales were handled through points of sale operated by Tiffany & Co., by The Swatch Group Ltd. and by independent retailers.
Swatch Group said Tiffany Watch Co. Ltd. will be permitted to wind down current business over the course of two years following effective termination of the cooperation contracts.
Swatch Group stated that it and Tiffany Watch Co. Ltd. will press claims for damages against Tiffany & Co., New York, in compensation for the loss of planned long-term future business.