I have no objection to Lindsay Lohan designing or art directing her own lines, but I have a deep-set sense of what the word "Ungaro" means to me, formed during the time the man himself was there, so I would have a hard time reconciling the idea that, in 2009, the label would need to hire someone of her profile in order to keep itself alive.
She's a media powerhouse in terms of the attention she can attract, so I can see the commercial sense in using her, although the decision will cost the label in other ways. But it's important to give any new team a chance, at least for a few seasons.