Saturday, 30 May 2009

Fashion house Christian Lacroix files for protection

French fashion house Christian Lacroix suspends payments and files a voluntary petition at a Paris court. The group has been in financial turmoil for the past few years.

PARIS, FRANCE (JANUARY 22, 2008) REUTERS-
Fashion house Christian Lacroix, which has faced financial difficulties over the past few years have suspended all payments and filed a voluntary petition at Paris trade tribunal.
The Paris trade tribunal will decide whether or not the fashion house will have to go bankrupt.

Designer Christian Lacroix, known for his colourful collections inspired by bullfighting founded his fashion house in 1987 thanks to the General Director of luxury group giant LVMH (Moet Hennessy Louis Vuitton).

But the company, which had never been profitable, was sold by Louis Vuitton Group to Falic, an American group in 2005.

Weakened even more by the financial crisis, Christian Lacroix lost 10 million euros in 2008 for a 30 million turnover.

The sales of this summer's women ready-to-wear collection fell by 30 percent according to French newspaper Le Figaro.

It adds that Christian Lacroix has suffered particularly because of the bad performance of the U.S. market, one where the group had focused its strategy.

After having looked for a buyer, the Falic group could try to save the group resulting in job cuts.

Christian Lacroix employs 125 people.