As part of its newly completed purchase of the American jewelry house, French luxury goods group LVMH moved on Thursday to change its management team as well as reorganize Tiffany’s design team.
After the renegotiation of the purchase price and Tiffany’s legal proceedings against LVMH, which threatened to withdraw from its pledge to buy the American house in the wake of the coronavirus pandemic, the deal was concluded. Ultimately, however, he decided to close the contract, for $425 million below the value of the initial move.
As LVMH reported, Tiffany’s new CEO Anthony Ledru, a senior executive of the Louis Vuitton brand of the French company, will take over from Alessandro Bogliolo, who is set to leave on January 22.
Alexandre Arnault, one of the sons of the head of LVMH, Bernard Arnault, who was previously in charge of the Rimowa luggage group, will assume the position of Executive Vice President, while he will also be in charge of the Products and Communications divisions of Tiffany, while Michel Burke, CEO and President of Louis Vuitton, will assume the role of President of the historic US jewelry firm.
If Tiffany is completely incorporated into LVMH, analysts estimate that the company will be able to extend the product line of the jeweler house to reach younger buyers, but also to concentrate further on the Asian market.
LVMH plans to restructure all areas of operation of the US jewelry brand, from the retail network to the online distribution department, in addition to Tiffany’s leadership team, as it tries to reposition the brand on the market.
In this sense, the French group is also promoting improvements to the American company’s design staff, finding out that the artistic director of Tiffany will leave the company, as the head is going to leave the company anyway.
On the design front, the company has already announced changes, saying creative director Reed Krakoff was ready to leave the business along with label leader Daniella Vitale. It did not, though, state who would be replacing them but said that LVMH is positive about the potential of Tiffany to increase its growth.
Since the purchase of Tiffany, LVMH, which also owns the Bulgarian jewelry house but collects much of its sales from fashion brands such as Vuitton, aims to improve its position in the jewelry market, since it is one of the luxury goods business segments that have the greatest growth opportunities before the coronavirus pandemic.