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By
AFP
Published
May 28, 2009
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Christian Lacroix fashion house declares insolvency

By
AFP
Published
May 28, 2009

PARIS, May 28, 2009 (AFP) - France's US-owned couture house Christian Lacroix SNC has declared insolvency after falling foul of the global crisis, the company said Thursday 28 May.


Christian Lacroix Autmun-Winter 2008/2009 - Photo: AFP/File/Pierre Verdy

Arguably one of the most exuberant couturiers in Paris, Christian Lacroix SNC said in a statement that the company owned by Falic had declared insolvency before a Paris court due to "the sharp downturn of the luxury market."

The company said it "has filed a voluntary petition with the Tribunal de Commerce de Paris to put itself under the protection of the courts" but intends "to present a continuation plan" and "intends to maintain its business operations throughout the proceedings."

Declaring insolvency is a first step towards bankruptcy protection.

After being bought by the US firm from luxury group LVMH in early 2005, the company launched "an ambitious and costly restructuring plan to reposition the brand offering to higher end collections," terminating ready-to-wear lines and opening two stores in the United States, one in Las Vegas, one in New York.

"Unfortunately, this longterm strategy for repositioning of the brand was dramatically hindered by the current and ongoing world financial and economic crisis which severely hit the luxury sector," the company said.

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