No firm buyer seen for Christian Lacroix fashion house
What does this mean?
"The outlook for beleaguered French couture house Christian Lacroix looked bleak at the weekend after potential buyers let a deadline pass to deposit cheques ahead of Tuesday's bankruptcy court hearing." The house of Christian Lacroix ran up losses of 10 million euros (14.9 million dollars) in 2008 for sales of 30 million euros, resulting in the Houses' current state.
Due to this, 11/100 employees will be kept as staff, the rest will have to be let go. The two investors who have expressed interest did not submit their proposals on time.
What that means: That means the court will be free to decide on Tuesday whether to accept the liquidation plan submitted by the house's owners, the US duty-free giant Falic. The court COULD turn down the liquidation plan, however it is not certain.
It is amazing to me that a company who has been around since 1987 is experiencing so much financial strain that they are unable to get investors for the company. With such a large fashion house going under, it is proof that the economy is uncertain. I wonder if any other fashion houses will be impacted to this extent.
Source: Yahoo News
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