French Lacroix fashion house is put in administration
today Jun 2, 2009
PARIS, June 2, 2009 (AFP) - French fashion house Christian Lacroix was placed under administration on Tuesday 2 June after filing for bankruptcy protection last week because of the global financial crisis, the company's lawyer told AFP.
Christian Lacroix catwalk show in Paris
"A period of observation of six months has been decided and an administrator has been nominated," Simon Tahar said.
The fashion house's US owners, Simon and Leon Falic, were at the hearing in a commercial court in Paris held behind closed doors.
Christian Lacroix, which employs 125 people, declared insolvency last Thursday 28 May after falling foul of the global crisis.
In a letter from Lacroix to his staff, the designer said last week: "I don't know what tomorrow will be made of, if indeed there is a tomorrow, but I will do everything to ensure we remain a couture house 200 percent."
He said he had been designing without payment in recent months and that Christian Lacroix SNC owed him 1.2 million euros (1.7 million dollars). He also said that shareholder management at the company had been "catastrophic."
Acquired from the world's leading luxury giant LVMH in 2005 by US duty free giant Falic, Christian Lacroix SNC said it had been forced to declare insolvency due to "the sharp downturn of the luxury market."
The company said then it intended "to present a continuation plan" and "to maintain its business operations throughout the proceedings."
Celebrated for his exuberant swathes of lace and embroidery, and fabrics in vibrant colours, Lacroix hit the catwalks more than 20 years ago with dramatic designs inspired by the costumes of his native Arles in southern France.
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