Today is a sad one for bankrupt fashion house Christian Lacroix. A French court has approved the restructuring plan submitted by the label’s current owners, the Florida-based Falic group. The Ajman sheikh who was expected to buy the label for 100 million euros and transform it into a lifestyle brand beyond its most fabulous dreams (one that makes palaces) failed to submit financial guarantees on time. And now the fashion world is left to mourn what is hopefully only a temporary loss of Lacroix shows from the fashion calendar.
Under the Falic plan, the label’s couture, ready-to-wear, and retail operations will close down. Only eleven employees of the 120 employed will stay on. Licensing deals will be used to pay off the label’s debts. Deals remain for some menswear, wedding dresses, scarves, and perfume.
But it’s anyone’s guess as to when, or if, the 22-year-old label’s heralded poufs and lace finery will return to the runways. Another very wealthy investor could still rescue the house negotiating directly with the Falic group.
Lacroix and his CEO had said weeks ago that despite the sheikh’s paperwork delay, they felt confident in him and his plan, which they favored above all others. They are surely not the only ones disappointed this morning. Bailout fail.
Court Approves Lacroix Restructuring Plan [WWD]
UPDATE 1-Court backs Christian Lacroix restructuring [Reuters]