Burberry to quit Inter Parfums?
Burberry have served notice of its intention to end its agreement with its fragrance and beauty licensee, Inter Parfums. The companies have been in talks since December, but if Burberry decide to walk, they would need to pay InterParfums approximately 181 million.
Inter Parfums have produced Burberry fragrances since 1993, and the Burberry license is said to account for half of all Inter Parfums' net profits.
Jean Madar, Chairman & CEO of Inter Parfums, Inc. commented, Discussions longer and more complex than expected have naturally led Burberry to exercise its option to buy out the license agreement before the July 31 deadline to ensure its ability to benefit from all possible alternatives. On our side, we have largely anticipated the consequences of this partnership being extended or not. For that reason, we are today particularly confident and motivated about the prospects of opening a new page in our history, regardless of the outcome of these discussions.