A turnaround plan was approved in a Paris courtroom on Tuesday for Christian Lacroix after potential buyers Hassan bin Ali al-Nuaimi and Bernard Krief Consulting missed a deadline to produce financial guarantees backing a takeover of the company. This ruling could very easily see the end of the fashion house’s haute couture and pret-a-porter clothing operations.
Christian Lacroix was once part of the French luxury giant LVMH Moët Hennessy Louis Vuitton and is now owned by the owners of Duty Free Americas, the Falic family. The family’s turnaround plan includes closing down Lacroix’s haute couture and pret-a-porter activities, while keeping the licensing contracts for perfumes and accessories. To make matters worse for everyone, out of a staff of 120, only 11 workers were kept aboard.
This court ruling doesn’t necessarily stamp the fashion house’s fate. Prospective buyers could still negotiate directly with the Falic group. Lacroix, which has not made a profit since it was founded 22 years ago, was placed under protection from creditors at the start of June.
Via: NY Times