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It was yesterday, October 5, 2020, that we learned of the announcement of this transitional direction by the Commercial Court of Nancy. While an extraordinary meeting of the central social and economic committee is taking place, the committee is calling on the former manager of the Meurthe-et-Moselle crystal factory, Hervé Martin, to take over the reins of the company, which has been in crisis since the beginning of the pandemic, in the position of Transition Group Director.
This election is effective immediately until January 31, 2021.
The crystal factory is uncertain about the future of the company.
The Chinese investment management company Fortune Fountain Capital (FFC) bought the luxury house in June 2018. Its Chinese buyer, Zhen Sun, had taken over the management of the crystal factory following the resignation of Daniela Riccardi last March, but following various debts accumulated over the year amounting to several tens of millions of dollars and a judicial liquidation, the creditors of Zhen Sun appealed for a change in the management of the crystal factory.
According to the provisional administrators, Hervé Martin is the perfect profile for this transition, having previously been the CEO of Baccarat between 2007 and 2011. For this urgent appointment, the former CEO of Kenzo will be in charge of the operational management of the crystal factory and its subsidiaries: “[…] today appointed Mr. Hervé Martin as Group Director with immediate effect and until January 31, 2021“, Baccarat stated in a press release.
Hervé Martin’s background is in luxury, first with the major Italian luxury houses Ferragamo and Frette, but also as Managing Director at Louis Vuitton and Cartier Jewellery International.
The crystal factory in Lorraine was created by King Louis XV in 1764. The multi-century-old company, which has become famous in the Lorraine region’s heritage, has been heavily affected by the health crisis, with revenue in the first half of 2020 of 52.2 million euros, down 29.6% from 2019.
The company’s reports in June 2020 also show a heavy loss of €11.5 million for the first six months of the year. A significant deficit for the company, which currently employs 1,000 employees worldwide, including 126 in Paris and 510 in Meurthe-et-Moselle.
Read also > WHY IS BACCARAT UNDER PROVISIONAL ADMINISTRATION?
Featured photo: Designated Strategic Director of the Baccarat Group, Hervé Martin is no stranger to the world of luxury © ER[/vc_column_text][/vc_column][/vc_row]
