Business figures embellished? Migros files lawsuit against founders of its own subsidiary
The dispute is escalating following Migros' takeover of the Bestsmile dental correction chain: The retailer is suing the founders, while they dismiss the allegations as unfounded. Now the court has to decide.
No time? blue News summarizes for you
- Migros takes Bestsmile founders to court over alleged irregularities in their accounts.
- Bestsmile founder Ertan Wittwer rejects all accusations and speaks of "absurd" allegations.
- Following the complete takeover by Migros, Bestsmile was liquidated in January 2025.
The dispute surrounding Migros' takeover of the teeth-correction start-up Bestsmile has reached a new high: the Swiss retailer has filed a lawsuit against the company's founders.
Bestsmile, founded by Ertan Wittwer, Philip Magoulas and Marcel Kubli, was fully acquired by Migros in 2022. However, doubts arose after the accounts were examined: Migros accuses the founders of having embellished the financial figures before the sale in order to achieve a higher purchase price.
The dental clinic chain, which once generated sales of CHF 50 million, was liquidated at the end of January 2025 - all branches have since been closed and all employees made redundant. According to market observers, Migros is said to have paid around CHF 100 million for Bestsmile - far too much, as will now be revealed.
Artificially inflating the figures?
Migros spokeswoman Prisca Huguenin-dit-Lenoir indirectly confirmed the complaint to CH Media, but would not provide any further details. The news came as a surprise to Ertan Wittwer: "We have not yet received any information from Migros or a court about a lawsuit," he said, criticizing the fact that he had to find out about it through the media.
According to insiders, Migros feels that it was taken advantage of during the purchase. Wittwer, on the other hand, emphasizes that Bestsmile was a successful company at the time of the takeover. The accusations are "absurd", especially as the transaction was audited and confirmed by the auditing company BDO.
The question of whether the turnover and profit figures were artificially inflated shortly before the sale is particularly controversial. Wittwer points out that Migros always had access to all the figures through its representative on the Board of Directors and that a comprehensive audit was carried out before the purchase.
Now the main issue in court is money - exactly how much remains unclear. The only thing that is certain is that the two parties have not found an amicable solution and that a judge will have the last word.
