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Christian Lacroix announces insolvency

By Kate Matharu on Friday 29 May 2009

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Christian Lacroix

It seems the economic downturn is hitting every corner of the globe after news that renowned fashion house Christian Lacroix has announced today is has launched insolvency proceedings.

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Created by French designer Christian Lacroix, the high-end fashion brand has revealed it does not have enough money to pay its creditors and puts the debts down to ‘the consequences of the global financial crisis which has sharply hurt the luxury goods industry’.

The design house, which employs 125 people, has taken its case to the Paris commercial court to seek protection from debt collectors so the business may continue operations.

The designer’s CEO Nicolas Topiol had attempted negotiations with the brand’s owner, the Falic Group (a U.S. duty free retailer) to garner further investment, but talks failed because of the sudden economic downturn.

Famed for its fabulous couture designs and ready-to-wear collections, Lacroix has long been a celebrity favourite with Christina Aguilera wearing a Christian Lacroix wedding gown for her marriage to Jordan Bratman in 2005 and Nicole Kidman and Madonna both championing the designer on the red carpet and on stage.

Lacroix isn’t alone, however, after Italian jewellery brand Bulgari posted its first quarterly loss in a decade in 2009.