Matthew Rubinger, who was the resident expert on Hermes handbags at Heritage Auctions, recently left his post for a similar position at rival auction house Christie’s. Heritage has filed a lawsuit, alleging that Rubinger violated his contract and stole trade secrets. The suit seeks $60 million in damages and lost profits from Christie’s, Rubinger, and two other former employees who left with him. Christie’s believes the lawsuit is without merit and plans to fight it in court.
Rubinger began buying and selling inexpensive purses in high school and then began trading designer handbags on eBay. He later worked for DropShop, a website that buys and sells goods, before moving on to Heritage.
Rubinger was head of Heritage’s luxury accessories business. The auction house said in the lawsuit that it invested in training him and helping him develop contacts around the world. Heritage also says it shared with him plans to expand.
On May 19, Rubinger told Heritage that he was leaving to go to Christie’s. Two other executives also resigned. The people who departed made up Heritage’s entire luxury accessories team.
Christie’s has been expanding into the market for vintage luxury handbags, which has been Heritage’s focus. Art prices continue to rise, but competition between auction houses has been cutting into commissions, prompting Christie’s to expand into other areas. Heritage has seen record sales and huge profits from luxury handbags.
Hermes has increased demand by limiting production of its handbags. Buyers can be on a wait list for as long as three years. The handbags are popular with collectors and investors. Customers can sometimes resell the bags for more than they paid for them.
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