Lacroix fashion house declares insolvency *Update* Inks Deal with Ajman Sheikh

[eternitygoddess]

Haute couture is NOT solely about wearability. It's the cutting-edge of fashion, the place where new ideas are proposed. Key ideas and elements of haute couture then trickle down to the lower rungs of fashion, and makes way into the chain stores and onto the streets. Haute couture is about innovation and imagination and creativity. It is a form of fantastical escapism. The world NEEDS those things. People have always held on to their love for fairytales and fantasy stories. Haute couture is fashion's answer to fairytales and fantasy. The fact that people no longer care about imagination and innovation, and rather go for mass produced, generic crap, is disheartening. Says a lot about the state of society.

I wish people would start realizing that.

I don't think any fashion event will devastate me as much as Lacroix's fall.

 

[Crimson C.C]

Well, it makes sense. I mean nobody in their right mind would pay twenty grand for a dress that's not even wearable. Not everybody is filthy rich and able to just shed money for stuff like that, people need to start realizing that.

Its about mind set. One who is an art collector can also collect haute couture. The dresses are wearable but you need to be able to wear them to the right places. As a society and i might be very traditionalist but i think we need to start wearing more things that are handmade/one off and eventually we will have a good industry.. But thats just trend setting in a different way.

 

[b9409]

Lacroix needs to be bought by PPR - the Gucci Group: they know what to do with these mythical brands like Balenciaga and YSL -much better than LVMH.

I blame the management.

They had to find a way to make the brand marketable. Instead of creating one or two lame fragrances with giving Avon the license, they had to operate and make the brand as influential and loud as what Balenciaga and Balmain are now. Accessories, shoes etc. The things that make a brand earn money. Couture does have its clients anyways. But without a strong structure for mass luxury, nothing can be achieved in today's luxury and fashion world.

Such a pity. I hope this will not affect Lacroix himself financially.

 

[eternitygoddess]

He just put his house up for sale. I wonder if this had to do with it...

 

[b9409]

^ I thought that house was up for sale for quite some time now... the one in Paris, right?

 

[Mutterlein]

Lacroix needs to be bought by PPR - the Gucci Group: they know what to do with these mythical brands like Balenciaga and YSL -much better than LVMH.

I blame the management.

They had to find a way to make the brand marketable. Instead of creating one or two lame fragrances with giving Avon the license, they had to operate and make the brand as influential and loud as what Balenciaga and Balmain are now. Accessories, shoes etc. The things that make a brand earn money. Couture does have its clients anyways. But without a strong structure for mass luxury, nothing can be achieved in today's luxury and fashion world.

Such a pity. I hope this will not affect Lacroix himself financially.

Hardly, consider first that it was actually LVMH who MADE the house. Christian Lacroix was a star name designing for Patou, Arnault had the idea to have him do couture under his own name and create another luxury brand to disseminate into another juggernaut name. The thing is, since it was created the company HAS NEVER made a profit. While perhaps this has to do with poor management (unlikely as Dior, Givenchy, Galliano, and Marc Jacobs are doing alright) it's more to do with the fact that Lacroix's creative vision has just never really sold whether it's clothes or other products.

 

[sethii]

From Times Online

May 28, 2009
Christian Lacroix goes bust as taste for luxury dries up
Ben Martin

Christian Lacroix, the French fashion house famous for its expensive haute couture, has declared insolvency after falling foul of the global recession.

The collapse of Lacroix, which is owned by the Falic Group, a duty free retailer, and employs 125 people, has been attributed to the effects of the global downturn and consumers’ reluctance to spend money on luxury goods.

The fashion house, which was a favourite of characters in the British television comedy Absolutely Fabulous because of its extravagant and expensive designs, said that it had “filed a voluntary petition with the Tribunal de Commerce de Paris to put itself under the protection of the courts" and that it intended to maintain its business operations throughout proceedings.

The company was bought by the Falic in 2005 and subsequently launched an ambitious restructuring plan.

Nicolas Topiol, chief executive of Christian Lacroix, said that the Falic Group's investment in the fashion company had been disrupted by the economic crisis, which had led to a downturn in the luxury goods market and which "considerably hurt our revenues".
With the onset of the recession, major retailers had begun to stop buying new Lacroix merchandise and in April, Neiman Marcus Group and Saks reduced their orders for Lacroix products.

The high-fashion brand was launched by Christian Lacroix 22 years ago and has become well-known for its colourful gypsy-themed clothes.
Mr Lacroix soon expanded out into jewellery, handbags and shoes and opened boutiques in London, Geneva and Japan and he became famous for his high concept approach to fashion, which in 1994 culminated in a collection inspired by folklore, fables and old culture. He has also experimented in children's wear and perfume.

However, the business has never been a financial success. The Lacroix fashion house has never turned a profit and last year reported a €10 million loss. Sales of the Lacroix women's summer collection are also down 35 per cent this year after major clients decided to reduce spending on luxury fashions.

timesonline.co.uk

 

[sethii]

From Times Online

May 28, 2009
Commentary: Christian Lacroix - brilliant, but expensive and irrelevant

The first-choice designer for Absolutely Fabulous’s Patsy and Edina has filed for insolvency in Paris
Alice Olins

Lacroix’s problem is that he was born a generation too late. The designer, whose heart and roots remain in haute couture, could never quite understand how to make his fantastical designs work for the modern woman.

The house was set up in 1987 after LVMH’s Bernard Arnault asked Christian Lacroix to build up a bespoke couture house for his luxury goods giant.

Arnault’s choice of designer was spot on. Lacroix had just received a Council of Fashion Designer's of America award for his work at Jean Patou, and many believed he was the next big thing after Yves Saint Laurent. The problem was, and remains today, that Lacroix designed clothes that could hold their own in the V&A, but couldn’t get the tills ringing.

Unfortunately, his ideas, which fused Spanish matador with gypsy fringing, splashes of 18th century corsetry and neon psychedelia (generally all in the same jacket) were never conducive with working women’s wardrobes. And they weren’t cheap either.

To his credit, Mr Lacroix did set up a ready-to-wear line for the couture house, a year after its inception. But even this failed to focus his ideas. The clothes remained astonishingly beautiful but again, there were too many colours, too many puffball skirts (le pouf, as they became known) and too many zeros on the price tag to entice the serious shopper.

His two biggest fans, Ab Fab’s Patsy and Edina neatly sum the whole problem up: there just aren’t enough Beluga eating, stunningly beautiful, moneyed women in this world to keep Lacroix’s fantasy alive.

To make matters worse, the house decided, in 1990 to launch its first fragrance, C’est La Vie. It wasn’t so much the fragrance that was the problem, though it did out-stink all the other early Nineties offerings.

The mistake was that it launched too early for the emerging fashion house and the advertising budget for the first year was $40 million. An extortionate amount, even by today’s standards, unsurprisingly, Lacroix never managed to recoup the money. And at the same time, his clothes were still making a loss.

Unfortunately, nothing really changed in terms of Lacroix’s designs or their ability to sell. His brilliance is unquestionable, but his grip on reality is a little less certain. Lacroix failed to find any sort of reality amongst his own fairytale designs and at the moment, it looks as if it could be a very sad ending to this creative story.

timesonline.co.uk

 

[sethii]

Christian Lacroix seeks creditor protection after talks collapse

Christian Lacroix, the French fashion house, has filed for creditor protection at a Paris court following the collapse of talks with possible investors.
By James Hall
Last Updated: 3:43PM BST 28 May 2009

Christian Lacroix is owned by the Falic Group, a US duty free retail operator, which has been trying to sell a stake in the company for a year.

In the statement on Thursday, Nicolas Topiol, Christian Lacroix’s chief executive, said that attempts to sell a stake were “directly hit” by the global financial crisis.

Falic added that it will continue financing the fashion house until a suitable buyer was found.

Christian Lacroix was founded in 1987 by the eponymous designer, who still designs for the label. The Falic Group bought Christian Lacroix in 2005 from LVMH, the French luxury group.

“The sharp downturn of the luxury market has significantly hurt our revenues,” said Mr Topiol.

Recent sales of Lacroix’s summer collection are down 35pc, according to French media reports. In April, some large US retailers reduced orders for 2009 Lacroix merchandise.

“The company expects to emerge quickly from the proceedings and to continue developing the brand,” Mr Topiol said.

telegraph.co.uk

 

[sethii]

How clothes brought down Christian Lacroix

French fashion house synonymous with 'le pouf' files for bankruptcy
By Genevieve Roberts in Paris

When Christian Lacroix launched his haute couture fashion label in 1987, the stock market was just months from crashing. Now, 22 years later, the creative flamboyance of the man who invented "le pouf" is once again being thwarted by the constraints of commercial viability. Yesterday, the fashion house filed for voluntary bankruptcy.

While Lacroix's exuberant designs, worn on the red carpet by Helen Mirren, Kirsten Dunst and Natalie Portman, have secured his position as one of France's most loved couturiers, the fashion label, which posted €10m (£8.7m) losses last year, has never once turned a profit.

The already precarious finances have been further undermined by the downturn in the luxury market, with sales of autumn's ready-to-wear collection down 35 per cent on last year. Even that enduring classic, the 'pouf' miniature puffball skirt, has not been able to bolster the bottom line.

Now the French commercial courts will decide whether to restructure the company, or liquidate it. A spokesperson for Lacroix said that the decision is expected in the next week.

When Christian Lacroix founded his label, in concert with Louis Vuitton (LVMH) chief executive Bernard Arnaut, the outlook was very different. Lacroix, now 58, had shone at Hèrmes and the fashion house of Jean Patou, and he quickly made a global impact in his own right for his extravagant designs.

The designer's cultural significance only grew, to the extent that he was soon name-checked as Edina's favourite designer in the cult British sitcom Absolutely Fabulous. In 2002, Lacroix received the Chevalier de la Legion d'Honneur for services to fashion. He even designed the décor for France's TGVs and uniforms for Air France.

But financial viability remained a pipe dream. In 2005, still making a loss, LVMH sold the company to the US-based Falic Group. The new owners invested heavily in the haute couture side of the business, in an effort to boost revenue, and expanded in the US. None of it did any good.

For the last year, Falic has been trying to sell a stake in the company or find a partner. According to Nicolas Topiol, chief executive of Lacroix, discussions were in "the final phase" but were "directly hit by the conditions of the financial markets".

Lacroix is just one of many luxury brands suffering in the recession. LVMH, the world's largest luxury goods company, recently cancelled a plan to open a flagship Louis Vuitton store in Tokyo, while Chanel recently announced that 200 temporary staff would lose their jobs. At Versace, revenues fell 13.4 per cent in the first quarter of this year.

But despite the "hurt" of the financial crisis, hopes were still running high at Lacroix yesterday that this would not be the end. Sources at the fashion house said that the label is still seeking a buyer. Lacroix himself is

contractually obliged to work there until next year. And shareholders, who want to keep the fashion house afloat, have said they will present a rescue plan to the court, although this is expected to mean job losses. Yesterday, a spokesperson for Lacroix said: "Regrettably, I cannot yet confirm if the July show will be going ahead."

independent.co.uk

 

[sethii]

In The Red

28 May 2009, 12:30PM
FRENCH design house Christian Lacroix has reportedly filed for voluntary bankruptcy as the label seeks to protect itself from an onslaught of creditors. The economic crisis, which has harmed the global wholesale business in particular, combined with Lacroix's recent brand expansion have been blamed for the financial strife.
"According to our information, Christian Lacroix was declared insolvent on Friday," French newspaper Le Figaro said today. "The representatives of the employees were informed yesterday evening at a works council. The Commercial Court of Paris will decide next week on a receivership or liquidation [approach]."
Sources within the house, however, are hopeful of recovery and are still seeking a buyer for the label, which was established as a couture house in 1987. The LVMH conglomerate, which owned the Lacroix name since its inception, sold the brand in 2005 to US group Falics - which has since been approached by a Swiss buyer.
Despite the current financial upheaval the label insists it will continue to produce its ready-to-wear and couture lines - and will be a presence at Couture Week in July. Couture is Lacroix's, "most flexible business," Nicolas Topiol, Lacroix's chief executive officer told WWD, "because we do most of it internally and we have a very dedicated group of clients."
"The perception of the brand and its power is very strong," he asserted. "It's the key to future development."

vogue.co.uk

 

[sethii]

Susannah Frankel: Sensitive soul of fashion lost the thread

Friday, 29 May 2009

"Lacroix, sweetie," Edina in Absolutely Fabulous often answered when asked what she was wearing, as if it were the most obvious thing in the world. Given the circles that the TV satire focused upon, it probably was. The exuberant designs that characterise this designer's work, inspired, he has said, by his southern France childhood, was as integral a part of the upwardly mobile 1980s as the Filofax and the predominance of matt black.

To describe Lacroix's handwriting as maximal – a counterpoint to the greige beloved of Giorgio Armani – would not do it justice. This is a designer who thinks nothing of mixing chartreuse, fuchsia, cobalt and marigold in one garment. Fabric is equally opulent – feathers, furs, lavish jewelled embroideries and brocades are staples of the most understated daywear.

At Lacroix presentations a carnation is placed on each gilded seat and devotees shower him with his favourite, appropriately blousy flower when he takes his bows. The designer's detractors argue, however, that Lacroix has refused to move with the times, that his vision of femininity is so flowery as to have become archaic.

More significantly, where Lacroix contemporaries have spent the past quarter of a century establishing themselves as lifestyle brands, this sensitive soul has not come up with anything as commercial as a must-have handbag, pair of shoes or, indeed, best-selling scent.

Hailing from Arles, this quiet and extremely cultured man burst onto the fashion scene as the creative director of Jean Patou. So enamoured with his designs was Bernard Arnault, chairman of LVMH, that, in an

unprecedented move, he set up a couture house in his name. Lacroix had single-handedly breathed new life into a dusty craft-form and it wasn't long before the rest of the world acknowledged his impact – Lacroix is one of only few fashion designers ever to have graced the cover of Time.

In 2005, following the gradual breakdown of the relationship between Arnault and Lacroix, LVMH sold his company to the American Falic Group. While he has designed opera costumes, set designs, hotels and even tramways, his fashion label is still floundering.

However times may have changed, should Lacroix disappear from fashion it would be a great loss. True, there are not many women who want to dress like the brightest and boldest of butterflies but, as anyone who has ever witnessed Lacroix's haute couture collections will be quick to testify, there is a beauty to his sensibility that remains unparalleled.

independent.co.uk

 

[waxy]

that's just... sad.

 

[JunyaSchick]

from what I have read in the article by suzy menkes (and from others about recession and fashion)... most fashion houses were almost living in a dream... created by a good economic climat... which means they didnt have such great management to be able to face a crisis/recession. Everything was fictional...

 

[eternitygoddess]

I'm going to cry.

This heralds the death of truth and beauty.

 

[dior_couture1245]

To me, this is the strongest argument:

However times may have changed, should Lacroix disappear from fashion it would be a great loss. True, there are not many women who want to dress like the brightest and boldest of butterflies but, as anyone who has ever witnessed Lacroix's haute couture collections will be quick to testify, there is a beauty to his sensibility that remains unparalleled.

From what I got from several articles, a Swiss investor is taking interest? Hopefully, things work out and a new investor is determined to both grow the Lacroix brand and protect the artistry that has always been associated with the label.

The recession is supposed to weed out those who are uninspired, untalented and useless from those who are talented, unique and special. So when I see the economy dragging down one of the greatest designers ever (in my opinion)...I just want to burst into tears.

 

[Miss Dalloway]

This is very sad, but not surprising, the house always had a problem with making profit.I just would miss his collection's terribly if the house died.

 

[educo]

Let the house go down. It's what the house needs. I know that sounds insensitive, but sometimes, a certain way of operating does more harm than good. It is well known that the house as it stood wasn't making profits, so let it go, go back to the lab and come back with a better formula. If Lacroix can put together a smart Think Tank, then the resurrection will be successful. It all falls down to whom Lacroix surrounds himself with.

The secret to all successful businesses is FLEXIBILITY. You have to be able to anticipate and bend with the times.

 

[mackos]

So when I see the economy dragging down one of the greatest designers ever (in my opinion)...I just want to burst into tears.

I feel like bursting into tears right now

 

[Diorette]

^ Me too. I'm so sad....