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| Joined: | Wed May 30th, 2007 |
| Location: | Twin Cities, Minnesota USA |
| Posts: | 104 |
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Matt... there is a veiled reference to the failed joint-venture with Selitta that supposedly contributed to their losses. Any details on what that was or how it unraveled? :?
The dollar amount itself is calculated based on a deal that was struck in the 2002 lawsuit; for any case of violation of the deal, damages in the amount of €2,500 would be awarded and the new lawsuit claimed damages based on 25,265 watches (movements) that were sold since than that did not meet the requirements for carrying the "Glashütte" marking. It's this amount of claimed (and awarded) damages that Mühle isn't able to pay and why they went into Chapter 11 protection.
Again, keep in mind that they are using ETA movements and some of their local competition (Glashütte Original and Union Glashütte) are actually part of the Swatch Group, which makes ETA movements.
The shortages of ETA movements forces everyone (including such venerable companies as IWC) to scour the market for movements, pay premiums (resulting in increased cost) or to look at alternate suppliers like Sellita. Even Sellita is already selling everything they can build at premium prices. So I am not surprised that there is increased financial pressure, but I believe it clearly is the amount of awarded damaged that sent them over the edge in this case.
What is mindboggling to me however is the history and politics in this situation: the original "Nomos" company ("Nomos-Uhr-Gesellschaft" / Guido Müller & Co.) was an importer of swiss pocket watches that were sold (marked up) with the "Glashütte, SA" marking from 1906-1910. IIRC, it was A. Lange & Söhne that got a court order to stop them and actually forced them out of business.
An IT Expert from Düsseldorf (far far away from Glashütte), Roland Schwertner, started Nomos again in 1991. They used ETA (Peseux) movements until they themselves were sued for using the Glashütte marking and had to invest in movement manufacturing and AFAIK, they still use some ETA ebauches.
Mühle however is a family owned business, local to the Glashütte town and region for a long long time, yet their usage of the Glasütte name is being questioned / disqualified based on accounting rulesdetails rather than company history and local ties.
I guess the more of an attractive industry/market these mechanical watches are becoming again, the more of these petty lawsuits we'll see and the more prices will go up for us all to fit the bill. :(
JM2C
Matt