Nicholas Puetis is the heir to Hermes’ fortune, whose wealth is shrouded in mystery. He may either be a billionaire or not, and he may have a considerable stake in his family’s luxury brand, depending on when and where these issues arise.
According to a new lawsuit filed in federal court later last month, Pueti said he recently signed an agreement to sell more than 6 million shares of Hermes to the Qatar royal family, claiming he holds the shares, about 5% of the company. However, Puech previously told the Swiss court where he lives that his shares had disappeared at the hands of a wealth manager.
The complaint in federal court in the District of Columbia, which was originally published but now sealed, accusing Pueti of not respecting the sale, adding a new plot to the enduring mystery of his wealth, giving us a glimpse into the lavish ambitions of Qatar’s monarchy. The original case was rejected by the court’s technology and the plaintiffs revised it with a move to keep it sealed.
Puech, 82, is the great grandson of Thierry Hermès, a 19th-century saddle maker, and transformed his business into a fashion powerhouse that is also respected by other fashion brands. Hermes, among other things, is known for its exclusive Birkin bags that only sell to insiders, but was valued at $300 billion in mid-February.
It is not the first time that a slice of the property of Mr. Pueti and his family has been the subject of great arguments and litigation.
In 2023 he created waves after recruiting a middle-aged Moroccan gardener and moved to bequeath half of his estate.
A new lawsuit filed by Honor America Capital orders Mr. Puech to charge a breach of contract to sell his shares, and to make good on his pledge and pay $1.3 billion in damages for “loss of profits, opportunity costs and reputational harm.” The company was established in February by Washington’s deputy chief of Qatar, and court documents show that it is supported by Emir himself.
The agreement and letter filed in the complaint indicate that the agreement was discussed for several months and was signed on February 10th. The Honorary American Capital Representative wrote to the lawyers of Pueti of Switzerland, saying, “We have confirmed that he has secured full funding from his Highness Sheikh Tamim bin Hamad al Thani, Chief of Qatar.
However, Mr Puech delayed the share transfer twice based on a letter sent by his representative and filed in court. On March 19, his lawyer wrote to the monarchy company, concluded that despite “the best and repetitive efforts,” his client was unable to acquire his shares and setting another deadline was “a waste.”
The parties’ attorneys did not respond to requests for comment. But Puetz’s past has not been lost in Catalis through royal-backed sovereign wealth funds and investment vehicles, including Harrods and printing company department stores. Still, the chances of getting a mass of Hermes clearly outweighed concerns about doing business with Mr. Puech, some experts suggest.
Hermes stock has skyrocketed over 200% in five years, and the brand is getting hotter, even as other luxury providers fill up. Eric Tully, a Columbia University professor who specializes in corporate and transaction law, said winning a 5% stake is “very valuable.”
Tully said it would be difficult to calculate damages based on the structure of the remedy transaction and legal rules. Therefore, rather than sorting it out, the judge can simply order Mr. Pueti to complete the transaction. Even if Puech turns out to be right and the stocks are not immediately accessible, their favorable ruling gives Catalis legal leverage if his property is eventually released and the stocks resurface.
However, cutting these stocks can prove to be extremely challenging. Puetz filed a complaint in France against his former wealth manager and repeated his claim that the stock had disappeared in Switzerland.
