Baselworld asks investors to accept rescue package
Lupa Systems, an investment company run by James Murdoch, younger son of Rupert Murdoch, has put forward a rescue package to MCH Group AG, owners of Baselworld and Art Basel to save the company, following the impacts of Coronavirus and the exit of Rolex, Bulgari and the Swatch Group from the show.
According to Bloomberg, with the abandonment of such major players from the show, combined with the cancellation of both Baselworld and Art Basel this year, the MCH Group is anticipating a fall in sales of up to $180 million.
The deal with Lupa Systems is thought to be of around CHF 100 million for 30-44% of the group and at an Extraordinary General Meeting to be held on 3 August 2020, the election of James R. Murdoch (Founder and CEO Lupa Systems), Jeff Palker (Managing Partner and General Counsel Lupa Systems) and Eleni Lionaki (Partner Lupa Systems) to the Board of Directors will be proposed.
In addition to the capital increase, the Canton of Basel-Land and the Basler Kantonalbank have offered to extend the repayment period of their CHF 35 million and CHF 40 million loans by five years.
In a bid for financial and structural strengthening to overcome the corona crisis and implement the long-term strategy MCH Group has said that “If this overall package were to fail, extremely little time would be left for developing and implementing alternative restructuring solutions before it was too late.”
Baselworld, MCH Group
Dramatic changes for Baselworld
In the heart of Switzerland lies Basel, home of Baselworld, the global watchmaking, jewellery, gemstone and related industries trade show. For over a century, Baseleworld has been a must-attend show for major brands, discerning buyers and influential press from around the world. An opportunity for this community to unite and discover first-hand, new trends and innovations launched by top brands.
Run over 6 days with 82,000 visitors and over 3,500 journalists, Baselworld has suffered a blow over the last 18 months with major brands including Bulgari, The Swatch Group and most recently Rolex, confirming that they will no longer participate in the show.
With over 60 gem specialists still participating, the show will remain an important opportunity for Amma Group to view and purchase stones. However, like so many organisations going forward, Baselworld will be judged on its agility and ability to innovate in order to find a ‘new normal.’
