Lacroix close to the brink

HAUTE couture firm Christian Lacroix yesterday filed for protection from its creditors after the credit crunch hit consumer demand for extravagant and expensive fashion.

Lacroix, which is owned by Falic Group, a duty free retailer, and employs 125 people, said it hoped to continue to operate by getting court permission to go into administration and strike a deal with its creditors.

Nicolas Topiol, chief executive of Christian Lacroix, said the downturn in the luxury goods had “considerably hurt our revenues.”

The company, which has never made a profit since it was founded 22 years ago, was celebrated by characters in cult British comedy Absolutely Fabulous due to its flamboyant designs. In 2008 Christian Lacroix made a loss of €10m (£8.7m) on revenues of €30m, while orders for its 2009 women’s ready-to-wear summer collection are down 35 per cent.