The luxury goods giant LVMH is to sell floundering fashion house Christian Lacroix. The chairman of LVMH, Bernard Arnault, is currently in talks with Florida-based travel retail company Falic Group. Although the group refrained from commenting, Falic’s chairman, Simon Falic, spoke to Women’s Wear Daily about the deal: “We are in final negotiations to acquire the entire brand,” he revealed. This entails the purchase not only of Lacroix’s money-guzzling couture business, but also his design services.
The Falic Group, known for its Duty Free Americas chain, has interests in fashion and cosmetics. It previously acquired cosmetics brands Hard Candy and Urban Decay from LVMH in December 2003. Representatives of the Falic Group reputedly met with the workers’ association at Lacroix last week to discuss the deal.
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Despite the sale Lacroix himself is unperturbed and positive about the future of the brand. When questioned about the developments he responded: “I’m still very confident in the future, with these people or whoever else. Before that I want to finish my couture collection (which will be shown on 25 January) because it’s my best answer. I am very confident, very serene. I am open-minded, and why not (sell Lacroix) if they don’t know how to manage the future of the house.” Meanwhile, LVMH has revealed a new Lacroix swimwear line.
Christian Lacroix founded his house in 1987 and was financed by LVMH. His colourful and extravagant designs captured the imagination of the haute couture set and he established a loyal client base. The label’s popularity could not, however, make up for the fact that haute couture is a financial burden to most companies.
It is believed that Lacroix will be retained by LVMH as designer for the ready-to-wear Emilio Pucci brand, which he joined in 2002. Analysts have estimated the sale at between $40.5 million (GBP 22.6 million) and $81 million.