The Hermès Heir Apparently No Longer

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Perhaps you recall reading about an estranged member of the Hermès family who wanted to adopt his gardener and bequeath to him the Hermès shares upon death? No worries if not, here’s a recap of the tale that began more than a decade ago and the odd twist it has recently taken.

At one time, fifth-generation Hermès heir Nicolas Puech was the largest individual shareholder of Hermès, home to the famous and coveted Birkin and Kelly. Puech held 6 million shares of Hermès stock, or roughly 5.7% ownership of the company, valued now at about $13 billion.

Around a decade ago, LVMH head Bernard Arnault secretly acquired shares of Hermès in what was seen as an attempt to gain control of the heritage Maison, which Hermès fought. It was never clear how Arnault amassed the interest, however, as Arnault unwound his acquisitions, Puech became estranged from the family and the company, ultimately resigning from the Hermès supervisory board.

Last December then 80-year-old Puech again made news headlines for wanting to adopt his middle-aged former gardener to bequeath him the Hermès shares upon his death. Puech had never married and did not have children. Whether he could adopt an adult was an open question. Additionally, Puech needed to cancel an existing contract whereby his Hermès interests would go to the foundation he had established.

Read more here.

Image courtesy: New York Post

Now we learn that Puech no longer owns the Hermès stock that had accounted for his entire fortune. He accused his financial advisor of defrauding him out of his fortune, but a Swiss court recently tossed his lawsuit. In other words, Puech is out of luck. For his former gardener, it is a case of easy come, easy go.

As for who has Puech’s former shares, Hermès doesn’t know. The issue was raised at last week’s Herme1s Q2 earnings call, with Hermès’ CEO Axel Dumas saying that Hermès doesn’t have a way to see and control the shares.