Swatch ends partnership with Tiffany

Posted September 20, 2011 | By Aaron Weinman

Watchmaker Swatch Group announces termination of cooperation contracts with Tiffany & Co New York.

According to a company statement by the Swatch Group on September 12, the decision was due to Tiffany & Co’s “systematic efforts to block and delay development of the business.”

The partnership began in 2008 when Swatch founded Tiffany Watch Co. Under this partnership deal, Tiffany Watch Co was responsible for the development, production and distribution of Tiffany’s branded watches.

Sales were handled through points of sale operated by Tiffany & Co, the Swatch Group and independent retailers.

Swatch will also be pursuing claims against Tiffany for the loss of planned long-term future business.

The Swatch Group said in its statement that Tiffany Watch Co would be given two years to wind down current business following effective termination of the partnership.

Tiffany & Co issued a statement shortly after saying that since it commenced the venture with Swatch Group “it has become clear that Swatch is unwilling to honour the terms of our agreement, work cooperatively and make the necessary commitments to develop business for Tiffany & Co watches in the luxury space.”

Tiffany claims that it has honoured its obligations and remains “confident that its position will be vindicated in the pending arbitral proceedings in relation to this matter and Swatch’s misconduct.”

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