The House of Chaumet Jewelry

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