Chaumet
Encyclopedia
The House of Chaumet founded in 1780, is a high end jeweler based in Paris.
. Most of the debts resulted from their speculation on the price of diamonds, after the sudden drop of market spot price
s. The two brothers are convicted of illegal banking activities, because they opened banking accounts for clients at their company, while promising high return on capital. One of their prominent clients was the French Justice minister
at the time, Albin Chalandon
. They were found guilty in French penal law of « bankruptcy, fraud, breach of trust and illegal exercise of banking activities », and were respectively condemned to five and four years of prison in a December 1991 verdict
. Their sentenced was later commuted to six months in prison each, raising concerns in French newspapers about the impartiality of judges in an affair in which high-ranked politicians were involved.
After their fraudulous bankruptcy, Chaumet was bought in 1987 by Investcorp
, a leading Bahrain
based Investment Bank. The company lost 10 Millions Francs in 1995–1997, but became profitable again in 1998, with a revenue
of 280 millions de Francs, and was bought by LVMH
in October 1999. After an unsuccessful attempt to penetrate the American market in the end of the 1990s, the company opens stores in Asia to fuel growth.
Contemporary period : Bankruptcy, Investcorp, LVMH (1987–present day)
Managed by the Chaumet brothers Jacques and Pierre, Chaumet filed for bankruptcy in 1987 with an outstanding debt of 1.4 billion Francs (US$200 million at the time), representing 8 years of revenueRevenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
. Most of the debts resulted from their speculation on the price of diamonds, after the sudden drop of market spot price
Spot price
The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate settlement . Spot settlement is normally one or two business days from trade date...
s. The two brothers are convicted of illegal banking activities, because they opened banking accounts for clients at their company, while promising high return on capital. One of their prominent clients was the French Justice minister
Minister of Justice (France)
The Ministry of Justice is controlled by the French Minister of Justice , a top-level cabinet position in the French government. The current Minister of Justice is Michel Mercier...
at the time, Albin Chalandon
Albin Chalandon
Albin Chalandon is a French politician and a former minister.Between 1968 and 1972, he was Minister of Public Works...
. They were found guilty in French penal law of « bankruptcy, fraud, breach of trust and illegal exercise of banking activities », and were respectively condemned to five and four years of prison in a December 1991 verdict
Verdict
In law, a verdict is the formal finding of fact made by a jury on matters or questions submitted to the jury by a judge. The term, from the Latin veredictum, literally means "to say the truth" and is derived from Middle English verdit, from Anglo-Norman: a compound of ver and dit In law, a verdict...
. Their sentenced was later commuted to six months in prison each, raising concerns in French newspapers about the impartiality of judges in an affair in which high-ranked politicians were involved.
After their fraudulous bankruptcy, Chaumet was bought in 1987 by Investcorp
Investcorp
Investcorp is a manager of alternative investment products, serving high-net-worth private and institutional clients. Its principal client base is in the six countries of the Gulf Co-operation Council, but it also has institutional clients in North America and Europe...
, a leading Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
based Investment Bank. The company lost 10 Millions Francs in 1995–1997, but became profitable again in 1998, with a revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
of 280 millions de Francs, and was bought by LVMH
LVMH
LVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational luxury goods conglomerate headquartered in Paris, Île-de-France, France. The company was formed after the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger...
in October 1999. After an unsuccessful attempt to penetrate the American market in the end of the 1990s, the company opens stores in Asia to fuel growth.
See also
- Albin ChalandonAlbin ChalandonAlbin Chalandon is a French politician and a former minister.Between 1968 and 1972, he was Minister of Public Works...
- Ljupka GojićLjupka GojicLjupka Gojić is a Croatian model and the face of Givenchy.-Biography:When Gojić was 10, she persuaded her mother to take her to a modeling agency where she learned basic steps as a model. She appeared for the first time on the cover of Teen magazine in 1995...
- Breguet (watch)Breguet (watch)Breguet is a manufacturer of luxury watches, founded by Abraham-Louis Breguet in Paris in 1775. Currently part of The Swatch Group, its timepieces are now produced in the Vallée de Joux in Switzerland...
- List of papal tiaras in existence
- Napoleon TiaraNapoleon TiaraThe Napoleon Tiara was a papal tiara given to Pope Pius VII by Emperor Napoleon I in 1805 following the pope's coronation of Napoleon as Emperor of the French....