True Luxury: Hermes Is Not For Sale!

I currently live in fear. No, not because of the current economic crisis and the possibility, even remote, of a global depression should the massive injections of taxpayer money into these wonky markets fail. No, no. I live in fear because of the recurring and stubbornly persistent  rumors  relating to the potential sale of Hermes, one of the last true luxury brands in the world.

Rumors of a potential takeover of Hermes by a rival luxury conglomerate float about Paris' CAC 40 every six months or so. Similar rumors circulated back in May  2008.  The usual scenario involves Bernard Arnault, head of LVMH, who is said to have had Hermes in his sights for years and is always on the lookout for an opportunity to launch a hostile takeover of France's most prestigious luxury brand. Usually, a press release from Hermes' President Patrick Thomas denying the intention of the 40 or so descendants of founder Emile Hermes (who together control approximately 75% of Hermes stock under the terms of a complicated family trust) suffices to quash rumors. This time, however, the usual press release has not put the pesky rumors to rest. Hermes' stock is currently resisting the robust downward pressure of global economic turmoil on markets and is trading at a historic high, probably in part thanks to these rumors.

I find this state of affairs perplexing - one would think that even the remote possibility of Hermes being purchased by LVMH would drive the stock price down not up. For those of you who think this is mere fear mongering, just think for a moment of what the Hermes image might look like under the direction of Bernard Arnault: L'il Kim straddling an Hermes saddle wearing nothing more than her hair extensions? The iconic 'Kelly' bag 'updated' by Pharrel Williams with hardware inspired by 'Jacob The Jeweller'? The possibilities are infinite. It's enough to make me cling a little closer to my beloved 'Birkin'.

Sincerely,

The Luxe Chronicles