Christian Lacroix has filed a request with the Paris Court to protect itself from its creditors.
It was announced earlier this week that fashion house Christian LaCroix had filed for bankruptcy. According to the associated press, Christian LaCroix hasn’t made any profits since its inception, 22 years ago. The Falic Group (who owns the fashion house) has been trying to sell the company and has been unsuccessful for a bout a year. The Falic Group believes the inability to sell this company is due largely in part to the financial crisis that the company has encountered.
The Falic Group bought Christian LaCroix from the LVMH (Moet Hennessy Louis Vuitton) Group back in 2005. This purchase resulted in Christian LaCroix opening stores in New York and Las Vegas. The company hoped to promote and increase revenue by stressing the “reputation of haute couture”, but due to the recession, this is now a mute point. People do not have the money to spend on luxury and those who do have it, have become very critical of what they will spend their money on.
High end retailers like Neiman Marcus and Sak’s have also reduced their buy of Christian LaCroix merchandise. Sadly the brand had a loss of 13.9 million dollars in 2008. Reports have also indicated that sales of the spring/summer collection are down by 35% this year.
The court’s decision is expected to be announced next week. The Falic Group will continue to fiance the house until a suitable buyer has made its purchase.