Le Figaro announced that the luxury label has become insolvent since Friday (May 22).
For the past year, shareholders have been juggling financial obstacles, while sales for the ready-to-wear company had experienced a 35% decrease. For example, the enterprise reported a loss of 10 million Euros on revenues of 30 million.
Since the 2005 takeover of the American company Falic Group, owners of a chain of duty free stores, Lacroix has gone into debt with the opening of two boutiques in New York and Las Vegas. Due to the economic situation, both stores have been harshly hit, as well as the brand’s plummeting perfume sales and the closing of its lingerie collection.
Shareholders are looking to resolve the problem next week, when the Commercial Court of Paris will opt between a liquidation and filing for creditor protection.