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Christian Lacroix Has Not Turned a Profit In 22 Years

Christian Lacroix SNC said it has launched insolvency proceedings after the 22-year old French fashion house fell victim to the global recession. The high-fashion brand founded by French designer Christian Lacroix told the Paris commercial court that it can't pay creditors because of the financial crisis-driven decline of the luxury goods industry. The company, which employs 125 people, said it is seeking protection from creditors in order to continue operations.

Today I read the following at the Wall Street Journal website, "French fashion house Christian Lacroix SNC has filed a request to a Paris commercial court to protect it from creditors, the company announced in a statement on Thursday. The fashion house, which is known for its colorful gypsy-themed clothes, hasn't turned a profit since its creation 22 years ago."

Is that possible? How could they have not turned a profit in 22 years? It makes no sense for a company to be in business if it does not make a profit? It simply goes against the laws of nature... Anyway, I am not certain if that is true that they never turned a profit. But that is what I read at Christian Lacroix Seeks Creditor Protection

Learn more about Christian Lacroix

Views: 42

Comment by Laura Ward on May 30, 2009 at 8:59am
His couture line hasn't turned a profit, but a lot of these couture houses make the majority of their income through diffusion lines, perfume, and accessories. The couture isn't expected to turn a profit because of the expensive price points and exclusive clientele. What they intend is to seasonally make beautiful handmade clothes that the world will witness for the promotion of their cheaper lines and perfume. Lacroix has about 1,000 points of sale globally and sells a range of products including a denim and a childrenswear line. His company sells their perfume lines through Avon-They are called Rouge and Absynthe for women and Noir for men.
Comment by Apparel1 on May 30, 2009 at 9:29am
Laura - thank you for that wonderful explanation. Very informative. Thank you.

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