The house of Chaumet, a very
reputable Jeweler established in the late 1700s, is primarily based
in Paris, France. The establishment enjoyed plentiful years of
fortune and maintained a high standard of excellence. However, their
legacy was not to remain an unbroken success.
The late 1980s brought with them
the necessity to file for bankruptcy.
In the year 1987, under
the management of brothers Jacques and Pierre Chaumet, bankruptcy was
filed with an accumulative debt totaling nearly 1.5 billion francs;
an amount roughly equivalent to a sum of 200 million U.S dollars at
the time. This staggering financial dilemma was an unfortunate
byproduct of speculation regarding the price of diamonds. The debt
was brought about by a rather unforeseen drop in market spot prices.
Jacques and Pierre were, in turn, convicted of illegal banking
activities.
The conviction was based on the fact that they
established banking accounts for their clients, assuring them they
would be generously compensated with a high capital return.
At the time, one of Chaumet's most
noteworthy clients was none other than Albin Chalandon, who, at this
junction in history, happened to be the French Justice minister. Both
Jacques and Pierre were tried and found guilty in the French penal
law system, with a verdict declared in December of 1991. They were
both subsequently detained in prison for respective sentences of five
and four years. Charges the brothers were found guilty of include the
following - illegal exercising of banking activities, fraud, breach
of trust, and bankruptcy.
Controversy later arose when both
sentences were thereafter reduced to a mere six months in prison
each. The French media brought attention to the issue of impartial
judges in relation to notable politicians. As rather well-known and
influential political figures, such as Albin Chalandon, had been
involved, this sentencing reduction caused quite a stir.
Following the public and financial
fiasco, the company was purchased by a top investment bank,
Investcorp, based in Bahrain.
While Chaumet Jewelry saw
financial drops in the period between 1995 and 1997 (a loss of 10
million Francs), the organization retained profitability in 1998,
enjoying a sum revenue of 280 million Francs. In October of 1999, the
company was bought yet again, this time by LMVH, a multinational
conglomerate of luxury goods with French origins.
Efforts on their behalf to break
into the American market nearing the end of the 90s proved
unsuccessful. Following this failure, and to bring about further
growth, the company has since focused on opening stores in Asia. To
view a large selection of jewelry in one of the largest online
galleries, visit: http://www.goldsea24.com/en
