Dior

"The Agache-Willot group indeed had, with its retail subsidiaries, Conforama and Le Bon Marché, its real estate companies: Belle Jardinière, its industrial real estate, its 4,500 homes, and its exceptional properties such as the Mivoisin estate, a considerable asset base generating significant income and free of mortgages. Indeed, 70% of the capital of the Conforama and Dior companies had been pledged to the banks since August 1980, but the direct competitors of the group, like DMC or the Prouvost group, are in an economic and financial situation that is hardly more brilliant without having such a considerable mass of assets."

"Here are two entrepreneurs who are also heirs; who have tremendously developed what they inherited, even though Férinel's real estate was in much better condition than Bolloré's papers; who each identified a sleeping beauty (Dior, within the Boussac empire, for Arnault, and Rivaud bank for Bolloré); who followed the advice of the same godfather in the Parisian establishment-Antoine Bernheim-to finance their rise to power; who ensured the construction of their empire through a very unusual blend of entrepreneurial aggression and ability to leverage new financial market instruments; who experienced both failures and windfalls (Gucci for Arnault and Bouygues for Bolloré); who moved into the new century without forgetting how to wield hostility (Hermès and Havas learned this to their detriment); who practiced financial engineering with incredible dexterity-Arnault increased his share of LVMH's capital from 38% to 46% in one day, crushing the Christian Dior holding, while Bolloré reached 27% in Vivendi, thanks in large part to the billions inherited from the opportune merger of the communication group with Havas; and who, finally, share the same dynastic ambition, a fierce determination to firmly establish this resolutely familial choice over time. In fact, it is the defense of family capitalism that is the cause of their joint presence in Lagardère's capital, and the potential source of a collision..."

"So the Willot brothers bought Boussac without spending a penny. The price (700 million francs) was paid for by several asset sales, including the daily newspaper L'Aurore, sold to Robert Hersant. For the rest, the prey financed its predator. In three years, Boussac would bring them more than 600 million francs. They are rich. They are boastful. With Dior, they dress princesses and stars. The establishment can no longer despise them. They could stop there, make their group a model of good management relying more on operating profits than exceptional capital gains, stop walking the tightrope and living on credit. But have you ever seen a hamster stop nibbling? Jean-Pierre Willot, the most ambitious of the quartet, decides to strike again. Two months after Boussac, he buys the Korvettes chain of department stores in the United States. Crêpe Willot has become a multinational corporation."

"real gem, Dior, whose name is revered everywhere in the world,"

"The first mistake: like a sausage, Agache-Willot is cut into slices. Through the IDI, the State takes over the textile activities, while Dior, Le Bon Marché, and Conforama remain under the authority of the Willots. In other words, this division socializes losses and privatizes profits, a common practice of the right, strongly denounced by François Mitterrand when he was in opposition. Morally questionable, this division is also technically inept since it prevents the textile recovery from being supported by the profits of luxury and distribution."

"Looking at it, the assets of the group appear considerable. Dior alone, according to an evaluation based on indications from the company, which will prove to be largely underestimated, would be worth around 1 billion francs. This is followed by Conforama (between 600 and 800 million), the Bon Marché-Belle Jardinière group (600 to 700 million), buildings (600 million) and Peaudouce (300 million). Not to mention the stocks valued at 1 billion. In total, nearly 5 billion francs, or nearly three times the amount of liabilities and twice as much as Arnault had estimated in his 1984 plan!"

"In the vineyards of Champagne and Charentes, there is relief. For several months, people there had been living in fear of a takeover bid for Moët-Hennessy. A choice target with its collection of great brands, including the top champagne, Moët-et-Chandon (30 million bottles), one of the two great cognacs, Hennessy (46 million bottles), a prestigious perfume, Dior, and renowned beauty products, such as Roc. But what neither the families nor Chevalier nor Racamier realized is that size is no longer, in itself, a defense against a takeover bid."

"On this chilly late morning, the old sly gentleman has just thrown himself into the lion's den. Earlier, just as the board meeting of LVMH was starting, Bernard Arnault had rushed into Béatrice Bongibault's office. She had been hired the day before as the new CEO of Dior. He had told her, "I may not have time to take care of you, because I'm onto something big." Unlike his usual self, he had burst out laughing, a carnivorous laugh."

"Above all, a few days before the meeting, LVMH's stock has once again soared on the stock exchange. Who is buying? Racamier started it. Immediately, Arnault reacted by taking 10% of the capital. He brings out the big guns in the face of his rival's rifle. "It was an attack, it was entirely legitimate that we respond without delay," explained the CEO of Dior to justify this investment of 4.1 billion francs made in three days, without his partner Guinness being consulted, contrary to the terms of their agreement, which will provoke the anger of Anthony Tennant, forced to finance 40%. The Englishman is starting to think that young Arnault is exaggerating. But can he go so far as to endanger the global distribution agreement between the two groups? Not really. And the presence of Alain Chevalier helps to calm him down."

"In private, however, Arnault's language leaves no ambiguity. Is he only interested in Dior perfumes? "We’re going to get thoe whole thing," he explains. And he clarifies his intentions: "We're obviously going to increase our stake. Initially, we'll reach 30%. My goal is to have complete control.""

"However, the arrangement around Dior did not go as smoothly as expected. When he organized it, Arnault never doubted for a moment that the Dior shares issued would sell like hotcakes. Although they were expensive, he believed that the name Dior, along with the control of LVMH, would be magical enough to attract the wallets of French and international investors to whom they were offered. However, the plan seemed a bit far-fetched. Indeed, to everyone's surprise, investors hesitated. Crédit Lyonnais, the lead underwriter, encountered more difficulties than anticipated. Apart from the Japanese insurer Nippon Life, which invested 500 million francs, foreign financiers stayed away. The remaining shares were left in the hands of Crédit Lyonnais, which had to wait some time to recoup its funds. Eventually, Guinness, as part of the overall negotiation, took over the 16% stake in Dior's capital that the bank had no use for."

"He sets the strategy. Thus, on Dior: "There will be no short-term consolidation between fashion and perfumes. But there will be coordination in several areas: communication, product launches, store openings, for example.""

"Arnault proceeded with a capital increase of 7.3 billion for Dior to finance the contribution of LVMH shares. Of this amount, 4 billion were injected by Boussac Saint-Frères, which controlled Dior 100%, 2 billion came immediately from the sale of Peaudouce, and the remaining 2 billion were to be obtained through a later operation that Arnault was not yet willing to reveal. Regardless, the Arnault group ensured that it retained 58% of Dior. This allowed them to raise 3.3 billion on the market, offering 42% of Dior's capital, particularly to French and foreign institutional investors. Bernard Arnault thus completed his financing without losing control of his fashion house, which itself owned the LVMH shares."

"With Nan Legeai, former secretary to the head of Asia at Dior, it's a different story. Bernard Arnault had bought Céline, it is said, to give her a job that suited her. Slim, with crimped hair, this American shared with Bernard Arnault at least two passions: numbers and power."

"Milan was establishing itself as the fashion capital, a cultural phenomenon and industry that generated wealth, liberated the country from the gloomy 1970s and catapulted it into a decade to be lived and enjoyed without thinking too much about tomorrow. Just as Dior's New Look fashion shows in Paris had helped French women emerge from the nightmare of the Nazi invasion with a return to displayed femininity, so on the Milanese catwalks, Italy showed the world its desire to live, consume, and enchant."

"Jean-Pierre Willot and his brother Antoine, resigned, can only accept them. First, a buyer must be found for Dior. Then, it is necessary to realize, within two months, 100 million francs of divestments. The sale of the shares of Compagnie de Navigation Mixte for 37 million francs, acquired piecemeal by Jean-Pierre Willot, and the execution of a lease-back operation on the Boussac headquarters on rue Poissonnière for 64 million should enable this to be achieved."

"Thanks to Dior, American buyers are once again flocking to Paris. Overnight, elegant American women find themselves with unwearable clothes. And the most remarkable thing is not that the dresses have lengthened by fifteen centimeters, but that Dior made a revolution by returning to the natural."

"The day after the press presentation, the planes were full. America was immediately won over: it was this battle that Dior wanted to win. If he had not made this bold move, the transatlantic market risked being lost. During the five years of war, the bridges had been broken between Paris and American fashion."

"Marcel Boussac confirms: “I always left Dior completely free with his creation. I thought everything had to be done to perfection. It was actually rather him when the hotel was being fitted out."

"And finally Dior strikes a very sensitive chord in him: this business and money broker is fascinated by creation. Many signs indicate that he aspires to create himself: Jacques Rouet testifies to this a little further on. It is certain that Marcel Boussac feels creation as something sacred, a mystery that overflows the simple know-how recipes, and even the considerable powers he attributes to the meticulous pursuit of perfection. Perhaps he knows that Beauty is not of the same essence as mediocrity, is not merely improved mediocrity. The total freedom that the autocrat respects in Christian Dior finds its explanation here."

"We know Boussac’s ideas on beauty and perfection. There is no doubt that he found immediate agreement with Dior on this point. As crucial as it is, we might be surprised to see the birth of the only venture that contradicts the strong reputation of the autocrat and remains the only example of trust the industrialist placed in someone other than himself."

"Dior said: “Beyond all the frills, only the numbers judge and speak.” The numbers indeed confirm beyond all expectations the success achieved with the press and world opinion. In fifteen days the anticipated revenue for the year has already been achieved. It reaches one hundred and thirty million by the end of this first year. The average price of a dress was then 25,000 francs. Even before the opening of the house, another granvillais friend of Christian Dior, Serge Heftler-Louiche (the house is decidedly a Norman stronghold!), proposed to him to create the company “Parfums Christian Dior [3](private://read/01jjdy9maqdsy9c2bv37rfja01/#bookmark8).” It was founded on March 4, 1947, and the growth of its revenue, which started like a rocket, would be as vertiginous as that of the parent company."

"Yet, as strange as it may seem, Boussac is not interested in figures—here at least. The pleasure he derives from Dior’s success, on an intellectual and aesthetic level, is far greater than what financial results can offer him. Dior achieved his victory in a single stroke and Boussac found in the brilliance of this triumph a repetition of his own experience, fixed in his memory as the success of a striking idea. Dior’s example confirms his theory of success, according to the image he cherishes of grand watchmaking: if all the parts of the mechanism are perfectly in place, if all the gears have been meticulously adjusted, if the mechanism has been meticulously checked, then success is inevitable. And if, when all these conditions are met, chance also allows you to arrive at the right moment, you must know to bet everything on that moment. This is what Dior did by focusing “on the smallest detail,” as Boussac notes: he had everything in place, he HELLO, MR. BOUSSAC^ made a big impact and was there at the right time — just when, in fashion, everything was ripe for change. Dior is the perfect example of the “Boussac guarantee” success."

"Yet, as strange as it may seem, Boussac is not interested in figures—here at least. The pleasure he derives from Dior’s success, on an intellectual and aesthetic level, is far greater than what financial results can offer him. Dior achieved his victory in a single stroke and Boussac found in the brilliance of this triumph a repetition of his own experience, fixed in his memory as the success of a striking idea. Dior’s example confirms his theory of success, according to the image he cherishes of grand watchmaking: if all the parts of the mechanism are perfectly in place, if all the gears have been meticulously adjusted, if the mechanism has been meticulously checked, then success is inevitable. And if, when all these conditions are met, chance also allows you to arrive at the right moment, you must know to bet everything on that moment. This is what Dior did by focusing “on the smallest detail,” as Boussac notes: he had everything in place, he"

"Without these initiatives questioning Jacques Rouët’s management, Boussac becomes more involved in the life of the great house. He decides to give the direction of fur to Frédéric Castet, although his resignation had been accepted by the London boutique where he was in charge of ready-to-wear, an area Boussac has always looked down upon: “You had harnessed a thoroughbred to a cart,” he says. He orders certain renovation works, encourages those with problems to come and talk to him, etc. Dior has become his favorite child."

"And yet, the industrialist still somewhat confuses matters when he declares: “Dior has never been more than a small bright flower in all my activities. The ‘Dior’ business only takes up a fifth of my working time *.” What is true is that the prestigious designer was able to both create and manage his house in complete freedom. Boussac never attended, during Dior’s lifetime, the “dress rehearsals,” due to an innate respect for creation in him and probably also because the great couturier, fiercely independent, never encouraged him to do so."

"He draws from Dior’s experience a distorted lesson that prioritizes the role of the creator and underestimates the influence of the public. It escapes him that fashion is a two-way street, and now he thinks that, in all his ventures, he can dictate his conception!"

"“From the first step, I was convinced of the futility of the venture. So many others had strived before me to resurrect names once glorious!… I did not feel gifted to bring back the dead.” Thus, carrying a negative response, he went to Rue Poissonnière to the appointment set by Marcel Boussac. But by chance of human affinities, having come to say “no,” Dior left the meeting with almost… his own house."

"Except for the protagonists, there was no witness that day in the large office on Rue Poissonnière to report how the connection was made between Boussac, fifty-seven years old, at the peak of his power, and Dior, forty-one years old, still waiting for his moment, between the great self-made man and the aesthete converted late in life to work, between the “king of cotton,” who nearly forty years earlier had revolutionized fashion in the countryside and small towns with his fancy cottons, and “the stout gentleman dressed in the neutral colors of a Parisian from Passy”—as Dior describes himself—who proposed to create a selective and exclusive couture house that would bring back to Paris the clientele of elegant women from around the world."

"Dior defined in seven words the style the house should adopt towards its clients: “A refined deference without servility.” Everything is thought out in the smallest detail. They even brought out of premature retirement in Saint-Lô the former doorman of Molyneux, Ferdinand, because Dior thought that his very British demeanor would have the best effect at the porch of 30 Avenue Montaigne."

"The recruitment of models comes with a comical misunderstanding. Dior had published an ad in the press, and it was the time when Marthe Richard was obtaining the closure of so-called “closed” houses. The hotel under renovation is suddenly invaded by a group of charming young people, but they were designated for an entirely different stroll than the elegant pirouettes on the pale beige carpets of the house, which made the future models of the “new look” so famous! When Dior finished the sketches of his ninety models, the time came to execute them. From the studio the size of a boudoir, it overflows onto the landing, the stairs, and all the spaces left free. The house lives in a fever. Workers and first apprentices, working together for the first time, endeavor to rediscover the cutting technique and invent forgotten hand tricks. From time to time, a model exhausted by contradictory fittings or a worker at the end of her strength collapses on the {{id_152}} piles of fabrics, the only free seats! The renovation work progresses miraculously, amid the growing invasion of fabrics."

"Once again, the intuition of the great Boussac has not faltered: he knows how to immediately recognize the winning horse. Never mind if he is not the originally sought designer. The old Philippe and Gaston house, at the end of its rope, will be closed. A new one will be created in the name of Christian Dior. If he needs his name and independence as the price for success, this exception to the sacred principles of an “empire” becoming liberal will be accepted. The candidate is worth the gamble. For once, Boussac lets it happen, and he will reap gold. Dior will crown the great businessman with the legend of King Midas."

"But as soon as the director finished, all the photographers turned their cameras on Saint-Laurent, with the press destroying the collective formula desired by Marcel Boussac. The young designer’s first collection is a triumph and, uniquely in the annals of Dior, he receives the honorific consecration on the balcony of 30 Avenue Montaigne. For the second time, Marcel Boussac is fortunate to come across the genius of a new generation. He attends with satisfaction the movement that propels Saint-Laurent towards glory."

"1954; the Dior house employs 1,000 people and operates 28 workshops. 1957: the turnover, including licenses and franchise stores, reaches 3.5 billion old francs. Boussac follows this fabulous expansion as a sponsor who can only congratulate himself on the choice of such a sponsored entity. “He was the most perfect sponsor,” say those involved in the meteoric rise. The hotel on Avenue Montaigne had to be expanded and renovated; Marcel Boussac continued from 1947 to 1957 to finance about 600 million, partly from reinvested profits and partly from his own funds. But after 1957, he will content himself with receiving the profits from this business, which will be the only one to escape the debacle [6](private://read/01jjdy9maqdsy9c2bv37rfja01/#bookmark11) [7](private://read/01jjdy9maqdsy9c2bv37rfja01/#bookmark12), and will be able to come to the rescue [8](private://read/01jjdy9maqdsy9c2bv37rfja01/#bookmark13) of failing textile businesses when necessity demands."

"⁠Here now stands the international — and in many respects anachronistic — stature of the man who henceforth agrees to expose his image to the public! Miracle of Dior!… But should we emphasize how much the “jewel” of Avenue Montaigne is an exception in the “Boussac system”? It is surely because Dior succeeded that the absolute monarch opened a few windows on his palaces and opened himself up to the outside world. Even the secret of his participation in the ownership of L’Aurore has been revealed!⁠"

"Dior said: “Beyond all the frills, only the numbers judge and speak.” The numbers indeed confirm beyond all expectations the success achieved with the press and world opinion. In fifteen days the anticipated revenue for the year has already been achieved. It reaches one hundred and thirty million by the end of this first year. The average price of a dress was then 25,000 francs. Even before the opening of the house, another granvillais friend of Christian Dior, Serge Heftler-Louiche (the house is decidedly a Norman stronghold!), proposed to him to create the company “Parfums Christian Dior [3](private://read/01jjdy9maqdsy9c2bv37rfja01/#bookmark8).” It was founded on March 4, 1947, and the growth of its revenue, which started like a rocket, would be as vertiginous as that of the parent company."

"The Dior house must therefore pay certain “royalties”: submit to styling consultations and tolerate the prying eyes of Rue Poissonnière. This is part of the owner’s rights. Willingly or not, one complies with these not particularly excessive demands."

"Before dressing at Dior, Boussac used to go to Charvet and Lanvin, and he had always ordered his capes and hats from Pool in London. He invariably wears a matching vest and subtle, discreet coordinates, never contrasting between the tie and the shirt, an embroidered pocket square, Lobb shoes whose shine has the depth of bronze, and his eternal white silk scarf draped over the shoulders. At his sight, the word “elegance” does not come to mind — as it must maintain the appearance of naturalness — but undoubtedly, at this time of his life, the word majesty. From his neatness, something unreal and timeless emanates. His suit appears royally foreign to the contin- Physical appearances. Never a stain, of course—he has a phobia of them—but never a wrinkle either, not even the trace of being worn. The crease of his pants is a miracle: it falls incredibly straight, as if starched or inhabited by a body immune to the inevitable marks of sitting. Even in everyday situations, Marcel Boussac always seems dressed as if for a solemn occasion. His appearance is not only studied but seems designed to impose distance and inspire reverence."

"Boussac tends to conceive the role of the Dior house as that of a research laboratory, at the forefront of its own textile creations. He intends to somehow appropriate the brain of fashion. He says: “I needed haute couture in my main business. I created Dior to get my hands on that indefinable thing called good taste [9](private://read/01jjdy9maqdsy9c2bv37rfja01/#bookmark14).” Jacques Rouet confirms: “Marcel Boussac understood that Dior would bring an element of prestige and notoriety that would reflect on his entire textile empire. At no time did he impose on a designer to use fabric from his productions. However, he sent personnel from his companies to see the collections, learn everything that was cutting-edge in textiles in terms of novelty, and stay informed on trends. He himself was very interested in the phenomenon of fashion and what makes success. He also asked for the assistance of Dior’s creative staff to supervise his ready-to-wear collections “Pierre Billet” and his raincoats “Blizzand”.”"

"The house opens on December 15th, and the collection is presented on February 12th, 1947. That’s the short amount of time it took to prepare the “bomb” that was to turn the fashion world “upside down.” Boussac gave Dior complete freedom to conduct this “lace” war as he saw fit. Dior’s success was having an absolutely precise idea of what he wanted to create and orchestrating its preparation with exemplary meticulousness and assurance. For the setting, he first wanted to create, “in the charming hotel on Avenue Montaigne, a decorated but not decorative atmosphere… whose invisible elegance was not to disconcert or divert the eye from the collection.” He chose the neo-Louis XVI style that had charmed his childhood with its classical and Parisian tone. In turn, his impeccable taste created, with those white and pearl gray wood panelings, those bronze sconces with small lampshades under a flow of Quintia palms, the famous “Dior” style, so characteristic was its imposed eleganc"

"A few days later, Fayol informs Dior that Marcel Boussac agrees to create a house in his name. The designer recounts that it still took the urgings of a fortune teller and the miraculous predictions of another to give him the courage to leave his serene days at Lucien Lelong."

"At thirty, Dior had to start earning a living and first asked his friends for help. They were named Henri Sauguet, Christian Bérard, Max Jacob, Pierre Gaxotte, Francis Poulenc, a youth passionate about the latest discoveries of Cocteau, Satie, or Diaghilev… Sauguet named their group “The Club.” Meeting point: the Tip Toes bar, rue Tronchet, where this youth spends hours gossiping, backbiting, inventing mimed stories while devouring pastries. A marvelous era that of this Paris of the “Roaring Twenties.” Only boredom was banned, and quirkiness served as the theme for the patrons’ balls: Etienne de Beaumont or Charles de Noailles. The fashion was for costumes, a game at which Dior excelled. He had an astonishing gift for turning an insignificant rag into an evocative costume. With a friend, he opened an art gallery, but these young people loved painting too much to make money from it. It was then, on the advice of another friend, Jean Ozenne, that Dior tried his hand at dress sketches: the talent that was accidentally revealed thus led him straight to Piguet, then to Lelong. It was there that destiny came to disturb him!"

""Certainly, he had targets. He wanted to buy Boussac, which belonged to the Willot brothers, then the Dior perfumes because Dior Couture was part of Boussac. He had targets and considerable determination. But at the time, he didn't have the financial means or the connections. I helped him until he reached the top," sums up the former associate of Lazard."

"Mrs. Piniot recalls that Moët's management had committed to placing the warrants with foreign investors. However, she notes that more than two-thirds of the issued warrants were placed with French institutional investors who agreed to hold them for a certain period of time. These included the Caisse des dépôts et consignations, the Caisse nationale du Crédit Agricole, Crédit Lyonnais, BNP, and UAP. A memorandum of understanding was even considered to formalize this commitment. It was only signed by UAP. Therefore, Mrs. Piniot concludes that there was a "misuse of procedure harmful to minority shareholders." Even more serious, she emphasizes that Bernard Arnault was perfectly aware of this irregularity when he entered the capital of LVMH. When the head of Dior abandoned his takeover bid and opted for a less aggressive solution, Lazard bank assigned one of its partners, David Dautresme, to recover the maximum number of warrants and "negotiate the conditions of their transfer." The operations were carried out through a Luxembourg intermediary, Belmavobel International Securities. Thanks to these negotiations, Arnault obtained nearly 94% of the issued warrants, which ensured him nearly 12% of LVMH's capital."

"To continue his momentum, he needs money. Before going on vacation, he reorganized part of his empire according to a well-established technique for raising capital: the placement of Dior's capital. Until then, Dior Couture was 100% owned by Boussac Saint-Frères. He transformed it into a financial holding company, brought his stake in LVMH and offered it to private investors."

"In secret, Bernard Arnault acquires his very first shares. In this autumn of 1987, he moves forward slowly. He waits to replenish his cash reserves. Certainly, his group has 3 billion francs. But that is not enough for the president of Dior. He starts by appealing to private financing. In less than a month, he manages to gather the equivalent of 1.5 billion francs in various credits. 13"

"The technique, although complex, is perfectly mastered. This is the fourth time he has used it: one year before, he introduced Conforama on the second market, then the holding company Arnault and Associates, of which the family kept only 60%. He has just placed 42% of Dior's capital with private investors to raise 3.3 billion francs, which allowed him to continue buying LVMH shares. The principle is simple: 1. He buys companies; 2. He improves them; 3. He can then raise capital to make new acquisitions."

"André Battestini remembers his first meeting with Arnault. The icy atmosphere of rue François-Ier contrasts with the warmth of the Vuitton offices. "Bernard Arnault knows how to charm when he needs to, but at first glance, he looks like a cold fish," he recalls. The boss of Dior had to redouble his amiabilities to secure the trust of his first allies. The meetings multiply in June in a secret location: Michel Piétrini's Parisian apartment in the eighth arrondissement. The strategy of concerted attack by both parties is developed."

"A few hours later, Anthony Tennant and his Lazard Brothers20 and Indosuez bankers meet with the Dior president and his loyalists, Robert Léon and Pierre Godé."

"One can well imagine their first conversation on the phone, one morning in early May: “Would you be interested in a stake in LVMH, Henry Racamier must have said, somewhat condescendingly.” “It would be a great honor, Bernard Arnault certainly replied in the tone of the greatest deference.” When the young boss of Dior hangs up, his smile is carnivorous. "I won," he probably thinks, before inviting his top executives to lunch. Bernard Arnault does not warn Antoine Bernheim. It is still premature. Lazard is already engaged with Chevalier. So he turns to Crédit Lyonnais for the occasion. A first meeting is scheduled with Henry Racamier's banker at the Dior headquarters."

"In this autumn of 1987, Bernard Arnault's attack plan is ready. His springboard will be Dior, his aircraft carrier, Crédit Lyonnais, his fighter jets, Lazard, and his various companies will serve as ammunition. As for his objective, it will be LVMH."

"When Henry Racamier introduced Bernard Arnault to the representatives of Moët and Hennessy on June 30th, he was obviously unaware of the negotiations between the president of Dior and Chevalier and Guinness. The families were also unaware. The president of Vuitton presented his takeover project which angered the families. They saw it as a betrayal from within, when they had feared an outside raider. They would never forgive him for this and asked Henry Racamier to leave the room. Frédéric Chandon de Briailles and Alain de Pracomtal then drew Bernard Arnault's attention to the dangers of a takeover: "Not only can another group attack us, but our best collaborators may leave us," they told him. Arnault acknowledged the argument. Alain de Pracomtal continued: "Would you see any inconvenience in associating with Guinness, with whom the group has committed itself?" Bernard Arnault was too happy to answer no. In exchange for this agreement that suited him, he asked for a right of first refusal on the shares of the Moët and Hennessy families, that is, on 13% of the capital. And he obtained it. The agreement will be signed at Lazard at the end of July. It does not have the unanimity of the approximately 200 members of the families. About fifteen young "reformers", especially among the Hennessys, think they are being forced. In any case, from now on, they are all linked: if they want to sell their shares, they are required to offer them first to Bernard Arnault. His strategy is starting to pay off. Bernard Arnault has managed to rally everyone to his side in... less than a week. First Racamier, who still relies on him to oust Chevalier. Then Chevalier, who is convinced he has found the necessary support in him to neutralize Racamier. Just like the families, who are now condemned to play with him. Finally Guinness, who has obtained a seat at LVMH thanks to him. A clever move. Everyone thinks they owe him something. No one yet suspects the young man's true intentions. "They will not be able to compromise my plans," he must speculate. He knows he has only strengths in his hand."

"Of Bernard Arnault, he simply says: "Believe me, he is very good." The president of Dior, even if he does not always share this mentor's analysis, is very concerned about his appreciation. He is indebted to him. It is Bernheim who transmits to him the secret of the safest, fastest, and cheapest technique for realizing his projects. As a good student, he learns with perhaps excessive zeal."

"The Lacroix adventure dazzles Bernard Arnault. Forty years after Marcel Boussac, he relives the same adventure: the birth of a fashion house. For the first time, he feels he has accomplished a work. But the president of Dior does not deviate from his path. Incessantly, he pursues his ascent and seizes, that is his technique, the opportunities that come within his reach."

"The young man from Arles was getting impatient at Patou. He had already won the Golden Thimble. His collections were exciting. Pushed by his businessman, Jean-Jacques Picard, he wanted to go further, create ready-to-wear. But Jean de Moüy, the president of Patou, was reluctant, and he didn't pay him well: no more than 25,000 francs per month. Bernard Arnault was interested in this unloved designer. He was seduced during a lunch. He was certain that Christian Lacroix should not be let go. What should he offer him? Dior's ready-to-wear? A house for himself? Arnault studied the costs and followed his intuition: he would launch a great fashion house: Christian Lacroix. To lead it, Paul Audrain. Seventy million francs were put on the table at first, with an investment of 200 to 250 million francs planned over five years."

"Dior must embody "the most beautiful thing in the world," Bernard Arnault is convinced of this. So he attacks the symbol: the building on Avenue Montaigne. It will be completely rebuilt, modernized, while keeping the spirit of Christian Dior. On the fourth floor, the president's office and those of his close collaborators overlook a rotunda, the small living room is adorned with a portrait of Christian Dior and a few white flowers, two dining rooms are planned. The entire floor is covered in pearl grey, walls, mouldings, carpets, and decorated with large black and white photos of the new-look era collections. A mixture of coldness, refinement, and supreme elegance..."

"At the beginning of 1985, Bernard Arnault took stock. Since his visit to the Willot brothers six months ago, he has come a long way. He got what he wanted: the fashion house Dior, the flagship, but also a distribution group (Conforama, Belle Jardinière, and Bon Marché) with interesting real estate assets. He also acquired packaging factories and Peaudouce baby diapers. The downside: a dilapidated textile group."

"It is time to return to France to buy a company. "Find it for me," he tells Pierre Godé. Which one does he want? He has no idea. However, when he goes to Bloomingdale's to buy a blue bathrobe with a red border and a suit, he chooses Dior and thinks: "There is no more beautiful name. In the United States, the president of Dior is better known than the president of the French Republic..." Prophetic."

"On the floor below, Bernard Arnault houses Financière Agache et Férinel. Further down, a constellation of SMEs spread across four sectors of activity: luxury (Dior, Christian Lacroix, Céline), distribution (Bon Marché, Belle Jardinière, Conforama), industry (Peaudouce, Saint-Frères, Boussac) and finance (Facet, Crédit Financier Lillois) 7."

"Finally, for the detriment of Dior, the seizing by BSF of a part of the capital gains realized on the sale of the SCI owning the Dior buildings on Avenue Montaigne as well as the issuance of two checks of 1,500,000 and 1,200,000 francs intended for a fund transfer to the United States for Korvettes."

"Bernard Arnault is, of course, questioned about his relations with the Willot brothers in the context of the agreements he has signed. He replies unequivocally that he is in no way the "front man" for the brothers. Contrary to the agreements signed with René Mayer, none of them will have any managerial power. Dior will not be sold to finance the concordat deadlines. The agreement signed is irreversible, the Willot brothers have signed the transfer slips of their titles. The workforce will be reduced from 15,640 to 12,252 without layoffs. He emphasizes the quality of the investors who will participate in the takeover operation alongside him. The direct and deliberate nature of his answers impresses the union representatives, who nevertheless remain very wary."

"The court will remind that the principles set by a ruling of the Court of Cassation of February 4, 1985 state: "The interest of the group is defined as a common interest distinct from the interest of the dominant company and inseparable from the particular interest of the member companies. If the collective interest conflicts with the singular interest of a company, it is the latter that must prevail when the group's strategy exposes it to a risk to which it should not normally be exposed." Consequently, it was necessary to verify if, within the Agache-Willot group, subsidiaries like Dior, Conforama, Au bon Marché, or la Belle Jardinière had not suffered impoverishment by BSF or SFFAW, without possibility of compensation. Thus, the court will convict Jean-Pierre, Antoine, Bernard, and Régis Willot of misuse of corporate assets and credit for the benefit of Korvettes and to the detriment of Conforama, Bon Marché, and Dior."

"On July 25, a thunderclap, nonetheless predictable: the indictment of Jean-Pierre Willot made the front page of all the newspapers. An arrest warrant has been issued against him by Judge Martinet on the grounds of corporate asset misappropriation to the detriment of the companies Dior and La Belle Jardinière. After being heard by the judicial police in Lille, Jean-Pierre Willot was urgently presented to the examining magistrate to be notified of his charges."

"These credits would be guaranteed by the joint guarantee of SFFAW and by a pledge covering 70% of the shares of Sidef-Conforama. In addition, the bridge loan must be secured by a pledge of 70% of the shares forming the capital of Dior. The provision of these securities will be authorized by the boards of directors of SFFAW and BSF on August 19. The memorandum of understanding will be signed on August 20, 1980."

"In 1979, Dior's turnover reached 274 million francs, up nearly 14% on the previous year. The net profit amounts to 22.7 million francs. The turnover achieved indirectly through licenses is 1,247 million francs, up 22% compared to 1978. The growth margins for Dior are considerable. Its activity abroad has developed significantly."

"In accordance with the agreement taken with public authorities, the group has thoroughly overhauled Dior's legal structure. This entity was split into multiple companies that owned the brand, another owned the business assets, and others owned the business assets and licenses depending on the continent."