Gucci Cancels $30-Million-a-Year Severin Contract

Gucci has reportedly canceled its contract with Severin Montres Ltd., a large distributor of Gucci watches.

Severin, a privately held Irvine company, had a contract with Milan-based Guccio Gucci SpA in Milan, Italy. That agreement was canceled last month, according to the trade publication Women’s Wear Daily. The current contract, worth $30 million a year, expires in May, the trade journal reported.

No one at Severin, which has about 100 employees in Irvine, would comment Monday.

“There has been enough said up until now, and there is no further comment,” said Larry Edelman, chief operating officer.

Severin Wunderman, founder and owner of the company, could not be reached for comment. Wunderman operates the parent company Severin Group, which is based at Irvine Spectrum. He told Women’s Wear Daily that Gucci’s termination decision could force him to liquidate his company, which does an annual wholesale business in Gucci watches of about $200 million.