PARIS — A court in Lyon, France, has given its go ahead to an agreement that will allow LVMH Moët Hennessy Louis Vuitton’s Tag Heuer division to pay compensation to employees of the brand’s former eyewear licensee Groupe Logo.Groupe Logo, France’s last remaining major eyewear manufacturer, was placed in receivership late last year after Tag Heuer, its biggest customer, announced it would not renew its license with the producer. In December, former employees of the eyewear-maker, who lost their jobs following the liquidation, sued LVMH and Tag Heuer, claiming the brand had made Logo economically dependent on its business.A source close to Tag Heuer and LVMH, meanwhile, said the firm’s demise was due to bad management, and Tag Heuer had done all it could to support the business after previous licensees dropped the company, meaning the brand was its last remaining major client.LVMH came to an agreement with the former workers over the summer that would allow their compensation, without recognition of any wrongdoing on its part. All 172 former employees will be able to receive compensation, not just the 78 who sued the firm last year. The Lyon judge’s decision allows the transactions to go ahead after Groupe Logo's shareholders contested the settlement, according to the source.
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