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

The problem is that almost everyone who says they love Lacroix probably cannot afford to buy their actual clothing. More over, his "ready-to-wear" collections are more "couture" in terms of marketing and prices. Basic short dresses that cost around $5,000 - $15,000 (or even more) is a bit absurd for a ready-to-wear, even luxury brands like Versace, Armani, and Chanel don't sell ready-to-wear products at those prices, especially if the dresses are not designed for actual "every-day" wear. I hardly doubt that he'd stop making couture collections also, but it sure would help if his "ready-to-wear" collections were actually competitively priced, even if it means compromising on the actual designs.


yeah from a lot of the articles, it seems like Lacroix is being very stubborn and difficult. there are so many bids, but he says it's never enough. in some ways it's good he doesn't compromise his vision but maybe he is going way too far. the clothes still have to sell
it's not really so bad if you make something with less expensive material or time-consuming work, is it? :ninja: it won't be the end of the world
 
From the Wall Steet Journal:
  • AUGUST 3, 2009, 2:59 P.M. ET
The Fall of Christian Lacroix

After many clashes and 11 CEOs, a famed designer goes bust


OB-EE175_Lacroi_D_20090731232042.jpg

Christian Lacroix at his atelier on July 6. “Perhaps I shouldn’t have been influenced by the idea that my name could be spread across the entire world,” he said.


By MAX COLCHESTER

PARIS—Christian Lacroix sat on a beige sofa in his Parisian atelier nibbling a pink macaroon as a lone client tried on one of his black pleated dresses.

The large ochre-colored room in which he created 22 years worth of high fashion was mostly empty. The seamstresses had left to go on holiday. They may not have jobs to return to in September.


“Perhaps I shouldn’t have been influenced by the idea that my name could be spread across the entire world,” the designer said, running his hand through his closely cropped hair before aiming a taut smile at his client. “You need ego but mine is not blinding.”

It has been a long fall from grace for Mr. Lacroix. In 1987 the former art student stormed Paris’s staid haute couture scene with his warm colors and Mediterranean flair. Now after more than two decades of losses the brand filed for bankruptcy protection in May. Two potential buyers are being lined up, but as things stand the 58-year old once hailed by critics as savior of haute couture can no longer design clothes under his own name.

Like many fashion designers before him, Mr. Lacroix’s desire to be an artist hampered his brand’s development. Of the 11 chief executives that Mr. Lacroix worked with, not one managed to reconcile his creative ambition with a profitable model. “A dress is not a sculpture, it is a business,” says Jean-Jacques Picart, a consultant and Mr. Lacroix’s former business partner.

In an era of publicly-traded conglomerates, the business-end of the equation has never been more pressing. Christian Lacroix was to be the first and last time powerhouse LVMH Moet Hennessy Louis Vuitton S.A. would attempt to create a fashion house from scratch.


As a boy growing up in the town of Arles in southern France Mr Lacroix never dreamt of fashion. At schools his teachers gave him dolls to play with while sheltering him from the midday sun. “I didn’t like the touch of their clothes,” Mr. Lacroix said. He wanted to illustrate books.
However in the early 1980s Mr. Picart found Mr. Lacroix a job as a designer at the fashion house Jean Patou, which nurtured top designers like Karl Lagerfeld and Jean-Paul Gaultier. He swiftly caught the eye ofBernard Arnault , a then-aspiring tycoon who is now chief executive of LVMH. Mr. Arnault’s strategy was to harness Mr. Lacroix’s reputation for making upscale clothes to sell more affordable products. Mr. Lacroix sold the rights to his name and became the brand’s creative director.

In 1987 the first Christian Lacroix couture show, which featured bubble dresses and bright colors inspired by his native southern France, received raves. “He brought a bit of sunshine to the Parisian catwalk,” says Olivier Saillard, a fashion historian and curator at the Musée des Arts Décoratifs in Paris. But the brand lacked world-wide recognition, and a global perfume launch in 1988 was a flop.


The perfume debacle set the tone for the next decade. Mr. Lacroix had wanted the perfume bottle to be in the shape of a flat stone with a branch of coral; the end result was a bottle shaped like a heart with what looked like an artery sticking out of the top. “It was disgusting,” says Mr. Lacroix. “The newspapers wrote that I was a maniac and sadist.”

Mr. Lacroix felt that LVMH was pushing his image down-market, picking the wrong people to make his ready-to-wear clothes and peddling a cheap Christian Lacroix hair dye. Mr. Picart says Mr. Lacroix made little effort to translate his vision to more wearable, sellable clothing. “He refused to play the game,” he says. When Mr. Picart argued that LVMH needed full control of the house to ensure the business’s success, Mr. Lacroix felt betrayed. In 1999 Mr. Picart left. LVMH declined to comment.

In 2005 LVMH sold Christian Lacroix to the Falic group, a U.S duty-free store operator that pledged to take the brand up market. “I thought at last my life would start,” says Mr. Lacroix. Despite the shift, the expensive clothes didn’t sell well, says Nicolas Topiol, Christian Lacroix’s current chief executive. Struggling to make payments, the Falic group shopped the brand but a buyer never emerged; by 2008 Christian Lacroix made a $14.1 million (€10 million) loss for $42.5 million (€30 million) of sales. The company filed for bankruptcy the following May, having invested $57.1 million (€40 million) in the brand.
Mr. Lacroix says the Falics weren’t willing to put enough money into the company. Mr. Topiol says the fact that Mr. Lacroix went through 11 chief executives suggests the designer was a source of problems. “When a pattern reproduces itself at length I think you can draw your own conclusions,” Mr. Topiol says.

In July a couture show, a stripped-down compilation of black skirts and navy dresses, was cobbled together with the help of donations from friends and admirers. Onlookers wept as the final couture gown swept past and his staff unfurled a banner which read “Lacroix forever.”

A week later the French Minister of Culture described the demise of Christian Lacroix as a “cultural disaster.” Four bidders have made offers for the brand. So far the Italian Borletti Group, which is associated with the Rinascente department store and Mr. Lacroix himself, is favored by the judicial administrator. A final decision comes in September.

Sitting in the showroom surrounded by boxes stuffed with unsold dresses, Laure du Pavillon, a colleague for 23 years, struggles to come to terms with the potential collapse. “It is a huge waste,” she says. “He doesn’t deserve this.”

Mr. Lacroix is sanguine. “Maybe we need something modest,” he says. “Something which makes a profit.”



Christian Lacroix’s Couture Through the Years

View Slideshow



AFP/Getty Images A look from the 1991 fall haute couture collection.

PT-AM173_style_DV_20090731184718.jpg
Three of his runway designs: Spring/Summer Haute Couture 1995, Fall/Winter Haute Couture, 1997-1998, Spring/Summer Haute Couture, 1999
 
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Well, I hope everything goes ok for him in September, sadly we shoudl get used to see a very RTW collections for a couple of seasons... until he recovers... but how eternitygoddess said...
There's be no Lacroix with no Lacroix couture.
 
According to Vanity Fair, the wealthy customer who tried to buy out Lacroix was Gulnara Karimova, daughter of the president of Uzbekistan.

lacroix.jpg

:shock::sick::yuk::ninja:

As much as I adore Lacroix, I'm glad she wasn't the one to save it; b/c judging from the way she destroyed that couture outfit, she would've probably made the Lacroix house into a trainwreck too.
 
they are SAFE !!!!

a man from UAE is buying them.

Big news in France today !
 
Christian Lacroix : l'offre des Emirats tient la corde
Florentin Collomp
30/09/2009 | Mise à jour : 16:52 | Ajouter à ma sélection
«C'est la solution mirifique qu'on n'osait pas espérer», juge l'administrateur. L'Italien Borletti, propriétaire du Printemps, se retire de la course.

La semaine des défilés de prêt-à-porter à Paris s'ouvre ce mercredi sans Christian Lacroix. Une solution heureuse semble néanmoins s'esquisser pour la maison qu'on a pu craindre condamnée depuis sa mise en redressement judiciaire fin mai. L'offre du cheikh d'Ajman, un micro-Etat des Emirats arabes unis, qui s'est manifesté il y a tout juste deux semaines, semble tenir la corde. L'administrateur judiciaire en charge du dossier se prononce clairement en sa faveur: «C'est la solution mirifique qu'on n'osait pas espérer», a commenté Régis Valliot.

Du coup, le groupe italien Borletti, propriétaire des grands magasins Rinascente en Italie et du Printemps, qui fit longtemps figure de favori, se retire de la course. «Après trois mois d'étude du projet, le groupe Borletti considère que malheureusement les conditions pour confirmer cette offre de reprise ne sont pas réunies», annonce-t-il dans un communiqué, ajoutant souhaiter «ainsi faciliter une finalisation rapide de loffre du cheikh de l'émirat d'Ajman». La solution Borletti était privilégiée par le couturier Christian Lacroix, qui s'était associé personnellement à cette candidature. Mais Borletti avait dû aussi discuter avec les anciens propriétaires de la maison, le groupe Falic, afin de tenter de monter un dossier de reprise en commun, qui n'a pu aboutir.

Autres candidats, Bernard Krief Consulting (DMC, Heuliez) et la Financière Saint-Germain (Haviland, Lalique, Daum) maintiennent leurs offres respectives mais complémentaires, déposées cet été. Financière Saint Germain reprendrait la société actuelle dont il apurerait le passif et développerait les accessoires et confierait à Bernard Krief Consulting les licences pour le prêt-à-porter et la haute couture, avec un investissement annoncé de 70 millions d'euros. «Nous n'avons aucun complexe par rapport à d'autres offres et sommes les mieux disant tant financièrement que sur le plan industriel et celui de l'emploi avec une production 100% française», affirme Louis Petiet, président du groupe Krief, qui reprendrait 105 employés.

L'offre du cheikh Hassan ben Ali al-Naimi devait être déposée mercredi dans la journée. Il devait proposer de reprendre la totalité des 120 salariés, les 14 millions d'euros de créances fournisseurs et 30 millions de dette, puis investir 70 millions d'euros en fonds propre. Le prêt-à-porter et la haute couture seraient poursuivies. Des discussions ont été engagées avec M. Lacroix dans ce sens. Ce qui devrait rassurer le ministre de la Culture, Frédéric Mitterrand, qui a dit s'employer «à fond» pour aider la maison Lacroix, fleuron de la création française, a surmonter ses difficultés. Le tribunal de commerce devrait se prononcer d'ici à la fin octobre.

**English Translation**

Christian Lacroix: the offer of Emirates holds the rope
Florentine Collomp
9/30/2009 ¦ Updating: 16:52 ¦ Add to my selection
" It is the fabulous resolution for which they did not dare to hope ", judges the manager. The Italian Borletti, owner of the Spring, leaves running.

The week of the parades of ready-to-wear clothes in Paris opens on Wednesday without Christian Lacroix. A happy resolution however seems to take shape for the home that they could fear convicted prisoner since her bet in receivership at the end of May. The offer of the sheikh of Ajman, a micro-State of the united Arab Emirates, who manifested himself hardly two weeks ago, seems to hold the rope. The receiver in load of the file pronounces apparently in his favour: " It is the fabulous resolution for which they did not dare to hope ", commented Régis Valliot.

Suddenly, the Italian Borletti group, owner of department stores Rinascente in Italy and the Spring, which has looked like favourite for a long time, leaves running. " After three months of study of plan, the Borletti group considers that unfortunately conditions to confirm this offer of resumption are not united ", he announces in a press release, adding wish to " so make easier a quick finalization of loffre of the sheikh of the emirate of Ajman ". Resolution Borletti was favoured by the couturier Christian Lacroix, who had joined this candidacy personally. But Borletti had also had to discuss with the ancient owners of the home, the Falic group, to try to take up a file of resumption together, which could not succeed.

Other candidates, Bernard Krief Consulting (DMC, Heuliez) and Financial Saint-German (Haviland, Lalique, Daum) support their respective but supplementary offer, deposited this summer. Financial saint German would take back the actual society debit of which he would audit and develop attachments and entrust licences to Bernard Krief Consulting for the ready-to-wear clothes and the haute couture, with an investment announced by 70 million euro. " We have no complex in comparison with other offer and are the best saying so financially that on industrial plan and that of job with a French production 100 % ", asserts Louis Petiet, president of the group Krief, who would take back 105 employees.

Offer of the al-Naimi sheikh Hassan ben Ali must be deposited on Wednesday during the day. He had to offer to take back the entirety of the 120 wage earners, the 14 million euro of credences purveyors and 30 million debts, then to invest 70 million euro in equity capital. The ready-to-wear clothes and the haute couture would be followed. Debates were begun with Mr Lacroix in this sense. What should reassure the minister of Culture, Frederick Mitterrand, who told be used "thoroughly " to help the home Lacroix, fleuron of French creation, has overcome his difficulties. The court dealing with trade disputes should be pronounced to the end of October.
lefigaro.fr
 
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no english translation ... sorry. the thing is not working for me right now.
 
L'offre du cheikh Hassan ben Ali al-Naimi devait être déposée mercredi dans la journée. Il devait proposer de reprendre la totalité des 120 salariés, les 14 millions d'euros de créances fournisseurs et 30 millions de dette, puis investir 70 millions d'euros en fonds propre. Le prêt-à-porter et la haute couture seraient poursuivies. Des discussions ont été engagées avec M. Lacroix dans ce sens. Ce qui devrait rassurer le ministre de la Culture, Frédéric Mitterrand, qui a dit s'employer «à fond» pour aider la maison Lacroix, fleuron de la création française, a surmonter ses difficultés. Le tribunal de commerce devrait se prononcer d'ici à la fin octobre.

that is the most important thing.
nothing is signed, yet. but if they announce it everywhere i guess it's because it's on a very good way.

cheikh Hassan ben Ali al-Naimi (Ajman Emirates - part of UAE) will refund Lacroix debts. And is said to carry on both Couture and RTW collections.
 
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Oh wow, nice! Very very good for him! Thanks for the news BerlinRocks! :wink:
 
Great news indeed. Thanks for sharing.
 
A rough translation of the french text shown below. best i could do.


Christian Lacroix: l' offer Emirates holds the cord Florentin Collomp 30/09/2009 | Update: 16:52 | To add to my selection “C' qu' is the mirific solution; one n' did not dare to hope”, judge l' administrator. L' Borletti Italian, owner of Spring, withdraw race. The week of the processions of ready-made clothes in Paris s' open this Wednesday without Christian Lacroix. A happy solution seems nevertheless s' to outline for the house qu' one could fear condemned since his setting in file for bankruptcy at the end of May. L' offer of the sheik d' Ajman, a microphone-State of the United Arab Emirates, which s' is expressed just two weeks ago, seems to hold the cord. L' receiver in load of the file decides clearly in his favour: “C' qu' is the mirific solution; one n' did not dare to hope”, commented on Régis Valliot. Blow, the Italian group Borletti, owner of the Rinascente department stores in Italy and Spring, which had the appearance of a favourite a long time, withdraws race. “After three months d' study of the project, the Borletti group considers that unfortunately the conditions to confirm this takeover offer are not joined together”, announces it in an official statement, adding to thus wish “to facilitate a fast finalization of loffre of the sheik of l' emirate d' Ajman”. The Borletti solution was privileged by the Christian Lacroix dressmaker, who s' was personally associated with this candidature. But Borletti had also had to discuss with the former owners the house, the Falic group, in order to try to assemble a file of joint recovery, which n' could succeed. Other candidates, Bernard Krief Consulting (DMC, Heuliez) and Financial the Saint-Germain (Haviland, Lalique, Daum) maintain their offers respective but complementary, deposited this summer. Financière Saint German would take again the current society of which it would audit the liability and would develop the accessories and would entrust to Bernard Krief Consulting the licences for the ready-made clothes and the haute couture, with an announced investment of 70 d' million; euros. “Us n' let us have any complex compared to d' other offers and sums best saying as well financially as on the industrial sphere and that of l' employment with a production 100% Frenchwoman”, affirms Louis Petiet, president of the Krief group, which would take again 105 employees. L' offer of the sheik Hassan Ben Ali Al-Naimi was to be deposited Wednesday in the course of the day. It was to propose to take again the totality of the 120 paid ones, the 14 d' million; euros of credits suppliers and 30 million debt, then to invest 70 d' million; euros in capital stocks own. The ready-made clothes and the haute couture would be continued. Discussions were committed with Mr. Lacroix in this direction. What should reassure the Minister for the Culture, Frederic Mitterrand, who said s' to employ “at bottom” to help the Lacroix house, floret of French creation, has to overcome its difficulties. The bankruptcy court should decide d' here at the end of October.



lefigaro.fr
 
**English Translation**

Offer of the al-Naimi sheikh Hassan ben Ali must be deposited on Wednesday during the day. He had to offer to take back the entirety of the 120 wage earners, the 14 million euro of credences purveyors and 30 million debts, then to invest 70 million euro in equity capital. The ready-to-wear clothes and the haute couture would be followed. Debates were begun with Mr Lacroix in this sense. What should reassure the minister of Culture, Frederick Mitterrand, who told be used "thoroughly " to help the home Lacroix, fleuron of French creation, has overcome his difficulties. The court dealing with trade disputes should be pronounced to the end of October.

also edited the #110 post :lucky:
 
Christian Lacroix Is Saved - Confirmed

Lacroix Inks Deal with Ajman Sheikh.

PARIS — Florida’s Falic Group has concluded a deal to sell Christian Lacroix, which is in administration, to Al Hassan Bin Al Nuaimi, sources said.


However, it is understood the Ajman sheikh plans to preserve the couture operations of Lacroix.


wwd

I don't have a WWD account so to those who have you may please share the article with us. Thanks!:flower:
 
good thing that they will continue the Couture collections
 

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