UPDATED: French luxury brand Christian Lacroix will be reduced to a licensing operation having failed to secure a buyer for the business, which went into administration in June.
The Paris Court of Commerce has approved a plan to a plan from majority owner the Falic group, to close the company’s high-fashion, ready-to-wear and retail operations and cut the workforce to from 110 to about ten employees.
Lacroix’s licensing agreements include men’s tailored clothing with Sadev, men’s shirts and knitwear with Rousseau, wedding dresses with Rosa Clara and scarves with Mantero and a perfume licence with Paris-based Inter Parfums.
The decision to dramatically downsize the the luxury label was made after bidders failed to meet the terms set out for a takeover.
Bidders including Gulf investor sheik Hassan bin Ali al-Nuaimi and French restructuring firm Bernard Krief Consulting are both still in the running but failed to submit sufficient guarantees to the Paris court handling the case.
The company’s lawyer, Simon Tahar, said: “The court rejected all the plans that were proposed by the different buyers and retained the plan to continue the company that was proposed by the current shareholders.”
Christian Lacroix went into administration in June having struggled with falling sales. Lacroix, which was once part of the LVMH group was sold to the Falic group, owners of US retail group Duty Free Americas, in 2005.
Although the turnaround plan has now been approved, other investors can still negotiate with the Falic group to take a stake.