The legal battle between Kering and former Yves Saint Laurent creative director Hedi Slimane rages on, with recent developments in Paris’ commercial court. Despite Kering’s appeals being rejected in two separate proceedings, the dispute shows no sign of resolution.
The conflict first arose in 2016 when Slimane, now at Celine under LVMH, contested a non-competition clause in his contract with Kering. A hefty $13 million payment was ordered by the court in favor of the designer, a decision that Kering sought to overturn to no avail. Not only did the court uphold the initial ruling, but it also mandated further financial obligations to be met by Kering.
In addition to the non-competition clause issue, a shareholder agreement between Kering and Slimane from 2013 has been under scrutiny. When Slimane departed in 2016, Kering terminated the agreement, sparking a legal battle over its validity. The court sided with Slimane, deeming the termination irregular and compelling Kering to cover additional costs.
A third legal proceeding remains unresolved, focusing on the variable component of Slimane’s pay during his final year with Kering. Despite an initial ruling ordering a payment of 9.3 million euros, Kering has appealed the decision, prolonging the legal standoff between the two parties.
During his tenure at Yves Saint Laurent, Slimane made significant strides in revitalizing the brand, leading to a notable increase in revenues. His edgy and youthful designs resonated with a new demographic, propelling sales figures to impressive heights. As the legal battle persists, both Kering and Slimane have refrained from public comments on the recent court decisions.
For more insights into the fashion industry legal disputes, check out these helpful links: Business of Fashion and Vogue Business.
