MCH Group AG, the organiser of Baselworld and Art Basel, has advised investors to accept a rescue package from Lupa Systems, an investment company run by James Murdoch, younger son of billionaire media mogul Rupert Murdoch.
A statement on MCH Group’s website warns that time is running out for any alternative rescue plan if an offer thought to be of around CHF 100 million for 30-40% of the group is declined.
“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,” MCH Group says.
With Baselworld already abandoned following the exit of a Rolex-led consortium of the show’s biggest exhibitors, and this year’s Art Basel show in September canceled, MCH Group is expecting sales to fall by up to $180 million this year, according to Bloomberg.
MCH Group will vote on the Lupa Systems offer as part of a wider review in August.
Baselworld’s former management team has been consulting with the watch industry over an alternative event for 2021, but no conclusions of the study have been revealed.