Coty subsidiary files lawsuit against Kering and Gucci

A subsidiary of beauty giant Coty has filed a lawsuit against Kering and Gucci in a UK commercial court weeks after a landmark acquisition deal between Kering Beauty and L’Oréal.

A case filing by HFC Prestige International Operations Switzerland SARL – the documents of which have not yet been made public – has listed Gucci America Inc; Guccio Gucci SpA; and Kering SA. Lodged October 20, the claim is in regards to “general commercial contracts and arrangements”.

The case comes after L’Oréal stepped in to take over the beauty division of luxury fashion giant Kering for a significant four billion euros. The partnership includes “the rights to enter into an exclusive 50-year licence agreement for the creation, development and distribution of Gucci fragrance and beauty products”.

At the time, the two firms underlined that all existing contractual obligations with Coty would be honoured. The official transition will begin in 2028, after Coty’s existing license with Gucci expires.

When asked about the lawsuit during an earnings call, attended and reported on by Global Cosmetics News, Coty’s chief executive officer Sue Nabi said the group would “defend its rights until the last day of the contract”, yet declined further comment.

Kering, meanwhile, told the media outlet that it “categorically rejects the unfounded allegations” and intends to defend itself.