DECEMBER 2009 - LACROIX STOPS COUTURE AND READY-TO-WEAR

Paris – The commercial court decided to implement the recovery plan of the shareholder Falic Group

Six months after the fashion house Christian Lacroix filed for bankruptcy, the commercial court of Paris decided today (1/12/09) to implement the recovery plan proposed by the current owner, Falic Group, which owns U.S. retail group Duty Free Americas. The implementation of this plan will generate a cut of roughly hundred jobs out of hundred and twenty. It also means the full stop of the couture and ready-to-wear activities (source Le Figaro 1/12/09).

Around a dozen of employees should remain to manage the license contracts for accessories and perfumes. As a repeating story, this is what happened to the French fashion house Patou when a young talented designer named Christian Lacroix left the company in the 80’s.

No credible buyer for the company

This time, the bride traditionally closing the couture fashion shows, did not find any acceptable fiancé. “The court rejected the propositions made by the different potential buyers and decided to validate the continuation plan proposed by the current shareholders” declared the fashion house lawyer Simon Tahar. “The court excluded a total liquidation which would have led to the end of the company” he added.

During the last months, groups such as Borletti or the Financiere Saint-Germain submitted offers. But the two short-listed competitors were the French investment group Bernard Krief Consulting (BKC) and the Emirati sheikh Hassan ben Ali al-Naimi, nephew of the ruler of Ajman, in the United Arab Emirates.

The designer Christian Lacroix enthusiastically supported the sheikh proposal to allocate a global budget of EUR100 million for cleaning the debts and absorbing the future losses necessary to re-launch and develop the brand.

Unfortunately, no financial guarantee was provided on time by the two competitors, so the court favoured the shareholders solution.

A feeling of relief                        

Nicolas Topiol, CEO of Lacroix, indicated that he felt “a little bit relieved” and he said that the court decision allows “the company to be preserved and gives a chance for redeployment” (source Le Figaro 1/12/09). The CEO does not exclude any future agreement with the Emirati sheikh.

The way of the cross          

After such a tragic end, it may be difficult for Christian Lacroix to stay in the eponymous company. From now, the brand will join the long list of famously named fashion houses waiting to be re-launched with new talents in design and management.

Yvon Le Gall

Luxury-world