Swatch terminates partnership with Tiffany & Co

AP News
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Posted: Sep 12, 2011 8:21 AM
Swatch terminates partnership with Tiffany & Co

Swiss watchmaker Swatch Group says it is terminating its partnership with U.S. luxury jeweler Tiffany & Co.

Swatch accused New York-based Tiffany of breach of contract citing "systematic efforts to block and delay development of the business."

The Swiss company said in a statement Monday that it would seek damages against Tiffany for loss of future business.

Swatch signed a deal in 2008 to develop, produce and distribute Tiffany-branded watches.

Tiffany couldn't immediately be reached for comment.

Biel-based Swatch recently reported half-year sales of 3.36 billion Swiss francs ($3.78 billion) and a net profit of 579 million francs.

Shares in Swatch were down 2.1 percent at 346.80 francs on the Zurich exchange.