The story behind Hermès is as mysterious and fairytale-like as the luxury brand’s folkloric collections.
Hermès is an independent, family-owned French fashion house known for its beautifully whimsical and artisanal styles.
The Hermès-Dumas family have owned and maintained control over the company for six generations since it’s founding in 1837 by Thierry Hermès.
Hermès is the parent of the most prominent and elevated designer bag of all time: The Birkin. A new Hermès Birkin bag can cost between $12,000 to a staggering $2,000,000.
Artisans hired by Hermes undertake extensive training to develop the “savoir-faire” needed to craft Hermès’ high-end products. Only a small handful are trained every year due to the magnitude of attention, care and resources required.
An enigmatic heir
French billionaire heir and businessman Nicolas Puech is a fifth-generation descendant of Thierry Hermès.
He resigned from the company’s supervisory board in 2014 because he “felt for several years beleaguered by members of his family, who have attacked him on several fronts” (Forbes).
Despite this, he still owns 5% of Hermès, and in 2024, his net worth was valued at $15.6B.
Recently, the aloof and secretive 81-year-old heir made quite the splash across headlines for a generous yet controversial act.
Puech decided to dedicate half of his $13B fortune to his former gardener, who he was also planning to formally adopt. The gardener, anonymous to this day, is a 51-year-old married man with two children.
Please note, that the exact figure Puech planned to give is unclear. Sources are conflicted about the exact amount with most citing half of $11.5-$14B.
Making & breaking bonds
Puech expressed that the gardener and his family are like his own children.
While this act of kindness touched the hearts of many, the conditions of making it happen came at a cost which has seemingly only caused problems.
See, Puech established a “succession agreement” with a charity called the Isocrates Foundation.
Puech himself created the foundation in 2011 to fund “the protection and promotion of public debate” (The Guardian). He was also the charity’s president.
The foundation said it was established to fund and support “public interest journalism and media organizations committed to strengthening the field of investigative journalism” and civil society organizations “working towards responsible digitalization and a healthy digital public space”.
Naturally, the board formally “opposed” Peuch’s decision to break the inheritance contract. It released the following statement:
“From a legal standpoint, the abrupt and unilateral annulment of a succession agreement appears void and unfounded,” the foundation said in a statement. “The foundation has opposed this move while leaving the door open to discussion with its founder and president.”
In addition, it said that as a Switzerland-based charity, it is “under the authority and surveillance of the Swiss Federal Supervisory Board for foundations”.
Unstitching a legacy
For years, Puech and the Isocrates Foundation have been locked in a rigorous dispute. The change of plans left the foundation in a difficult position, forcing it to postpone new grants.
Now, Puech has a new problem because the fortune itself is “missing”. Vanished. Gone.
Puech claims that his former wealth manager of over two decades, Éric Freymond, may have misappropriated the funds.
In a Swiss court case, Puech alleged that his wealth mostly came from his shares in Hermès and that, as it stands, he no longer owns any of them. He claims that he didn’t realize the transfer of ownership because Freymond received his bank statements.
While it is true that Freymond managed Puech’s fortune for a 24-year period, the allegations were dismissed for insufficient evidence.
A Swiss media outlet called the Tribune de Genève reported that the stock was deposited in a Geneva bank in 2012. However, unclear where the shares are at this time.
Geneva’s Public Prosecutor’s Office declined to investigate based on Peuch’s allegations.
Non-fiction or fabrications?
Peuch’s lawyers, Grégoire Mangeat and Fanny Margairaz, stated they are “in the process of studying the criminal file in detail” and declined to comment further (Business Insider).
Meanwhile, Freymond’s lawyers report that the financial advisor is shocked by Puech’s accusations and asserted that he was not involved with managing the stocks.
The case certainly isn’t closed and for the time being, neither the foundation or the gardener can rely on their once-promised payouts.
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