Heritage Auctions has been experiencing phenomenal growth exceeding 50% annually for their luxury accessories category. Take for example the designer handbag market. In 2011, Heritage managed to sell a red shiny Hermes Birkin crocodile bag decorated with diamond hardware and 18k white gold for a whopping $203,150. In December 2013, they sold a Hermes Kelly handbag made from Togo and crocodile leather for $125,000.
Their success caught the attention of Christie who has decided they too wanted to expand their business in this segment. on May 19, 2014 Matthew Rubinger and 2 top execs responsible for Heritage’s success left the company, leaving a vacuum in Heritage’s entire luxury accessories division
This has led Heritage, under current President, Gregory Rohan pressing a $60 million lawsuit against Christie claiming that Rubinger and 2 former execs stole trade secrets, breach of contact and seeking the said quantum for lost profits.
Heritage, under current President, Gregory Rohan has pressed a $60 million lawsuit against Christie claiming that Rubinger and 2 former execs stole trade secrets, breach of contact and seeking damages for lost profits. Heritage is said to have claim that Rubinger through one of the 2 execs that left the company with him had seek permission for access to Heritage’s sensitive strategic plans
In response, Christie brushed aside Heritage’s claims as without merit and is making preparation to defend itself while maintaining their decision to proceed with the expansion plans for the handbag accessories business segment.
Read more: Read more: http://www.nytimes.com/2014/06/14/business/high-end-hermes-handbags-at-center-of-suit-against-christies.html?_r=0