Balmain In The Deep Red

[Lena]

sad

Balmain Seeks Debt Protection

PARIS — Balmain, the French fashion and fragrance house whose image has floundered since the departure of couturier Oscar de la Renta in July 2002, on Thursday said it had filed for the French equivalent of Chapter 11 debt protection.

A spokesman said it was unclear if the runway presentation of Balmain’s ready-to-wear and couture collections would be affected. “It’s not the end of Balmain,” he insisted. “Clothes will continue to be produced.”

But sources said it was unlikely Balmain would go forward with its couture outing this July, which was to be the first by French designer Christophe Lebourg.

Balmain said it filed for debt protection after an Asian equity partner reneged on an agreement to invest $5.9 million, or 5 million euros, in the troubled business.

Dollar figures have been converted from the euro at current exchange.

The house declined to provide the name of its supposed Asian partner and Balmain president Alain Hivelin was unavailable for comment. Balmain, which employs some 160 people, said it would seek other investors.

“The capital infusion would have allowed Balmain to ride out the crisis in the luxury industry after Sept. 11 and [during] a very difficult 2003,” the house said in a statement.

The spokesman said Balmain’s sales declined by more than half last year to $13.6 million, or 11.5 million euros, from $29.5 million, or 25 million euros, a year earlier.

Since de la Renta left, Balmain has been unable to find its footing. It recruited French designer Laurent Mercier, who already designed Balmain’s rtw, to oversee the couture after de la Renta’s departure, but his debut collection last year was weak and he and the house parted ways.

Lebourg was then tapped to spearhead rtw and was scheduled to make his couture debut in July. So far, his first two rtw efforts for the house have received tepid reviews.

— Robert Murphy

from wwd

 

[ignitioned32]

Ya Balmain has always been in trouble after de la Renta left.

 

[seditionary]

Originally posted by Lena@May 14th, 2004 - 8:21 am
Balmain, which employs some 160 people

huh! is that it? 160 people..... thats so little i would have thought...

the end of couture carries on happenin around us.....

 

[mikeijames]

i had come to associate balmain with de la renta's couture...i wonder if he left for financial reasons (sounds like they wouldn't have been able to afford him)...

 

[softgrey]

i just love that everyone is finally acknowledging and talking about the hit that the industry took after 9/11...it was too weird when everyone was just pretending that it didn't happen and that everything was ok...i think that everyone thought the economy and the industry would just bounce back if we just had a positive attitude...so no one really cut back and tightened their belts...now we're seeing the result of that...

i think this is the beginning of a real recovery...though it will be slow...admitting the problem is the first step to solving it...

 

[tott]

Originally posted by softgrey@May 16th, 2004 - 1:07 am
i just love that everyone is finally acknowledging and talking about the hit that the industry took after 9/11...it was too weird when everyone was just pretending that it didn't happen and that everything was ok...

I think the couture houses were just counting on the fact that it wouldn't affect them...

Let's face it, the couture world is a small and relatively sheltered one... They probably thought it would be business as usual.