The family advisory council now meets weekly to arrive at a new group structure after the arbitration court decision. The conversion, as decided in 2020, is not legal because some of the shareholders are excluded.
“We are all very connected to Tyrol and Austria. That’s why we need to find a solution now,” said Christoph Swarovski, one of six “advisory boards” in the crystal group who are now discussing the future structure.
We now see each other several times a week. Because the arbitral tribunal verdict invalidated the 2020 reform. An Austrian GmbH, which is owned by the Swiss holding company, was established. This brought in EUR 350 million in Watten-based Swarovski KG to strengthen its equity. This must now be converted into a shareholder exchange.
Part of the family “excluded”
The trigger for the challenge was that part of the family around Christoph, Helmut and Gerhard Swarovski was more or less “silenced”. Although he only owns about 20% of the shares, the articles of association provide for unanimity for important decisions. That should have been accepted by the majority of shareholders (about 70 in total). Because there is nothing to be heard about a possible dispute of the decision of the (private) arbitration judge at the OGH.
People talk to each other: the largest shareholders are Marina Giori (sister of the late Gernot Langes) and her cousin Marcus Langes-Swarovski. Like former CEOs Robert Buchbauer and Mathias Margreiter and Carina Schiestl-Swarovski, you sit on the six-member advisory board.
The family largely withdrew from business operations
It is clear to everyone that the complicated structure with unanimity has no future. Christoph Swarovski’s suggestion: “We are a conglomerate, where an Austrian brokerage firm should be.” The family must largely withdraw from the business, which has already happened to a large extent.
The problem is that this year the crystal division is in the red for the third year in a row. The (smaller) parts of the Tyrolit and Optik group are profitable. The newly hired head of crystal, Alexis Nasard, should position Swarovski as a “luxury brand”. There will also be a lot of discussion about this strategy.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
