LVMH set to sell Lacroix label to US retailer for €2m

LVMH is in talks to sell its loss-making Christian Lacroix fashion house to a US consortium.

Almost two decades after Bernard Arnault, the chairman of LVHM, asked M. Lacroix to build up a bespoke couture house for the luxury goods giant, he has decided to cut his losses.

LVMH is on the verge of closing a deal to sell the fashion house to Falic Group, the Florida-based duty-free retailer, for about €2m (£1.4m).

Falic Group is run by three brothers, who are Americans of Israeli and Russian origin They own Duty Free Americas, which has 90 shops in US airports. Two years ago, LVMH offloaded two California-based cosmetics companies, Hard Candy and Urban Decay, to the brothers.

The move is part of the French company's strategy of paring back unprofitable offshoots to focus on its biggest brands such as Louis Vuitton and Christian Dior. The group has sold 25 brands over the past five years, trimming its luxury retail empire to 50 brands.

Under its new owners, Lacroix will continue to produce haute couture. The fashion house, which Mr Arnault put up for sale in August, has annual sales of €35m. Although the French group does not say how its individual brands perform, analysts believe Lacroix lost about €200,000 last year

A source close to LVMH said: "Mr Arnault lost patience with the couture house."

M. Lacroix is revered in the fashion world for his exuberant take on fashion. His fin de siècle designs are legendary as is his love of bright colours. He is happiest combing hot pinks, bright turquoise and fluorescent yellow - usually on the same jacket.

The fashion house started in 1987 and was an instant hit. Early reviews compared the buzz surrounding its first collection to the wave of publicity that Dior's New Look generated. It remains the only couture label that LVMH has built up from scratch. From its base in an 18th-century Parisian palace, it also produces ready-to-wear collections, jeans lines and household textiles.

The deal will not mean the end of LVMH's relationship with the couturier, who will remain as the head designer for Emilio Pucci, the Italian label controlled by LVMH.

Separately, LVMH said that it had completed its recent £330m purchase of Glenmorangie whisky. It plans to push the brand internationally through its global distribution network.

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?
Season's finale brings the end of an era for top coaches and players across the continent

The end of an era across the continent

It's time to say farewell to Klopp, Clement, Casillas and Xavi this weekend as they move on to pastures new, reports Pete Jenson
Bin Laden documents released: Papers reveal his obsession with attacking the US and how his failure to keep up with modern jihad led to Isis

'Focus on killing American people'

Released Bin Laden documents reveal obsession with attacking United States
Life hacks: The innovations of volunteers and medical workers are helping Medécins Sans Frontières save people around the world

Medécins Sans Frontières's life hacks

The innovations of volunteers and medical workers around the world are helping the charity save people
Ireland's same-sex marriage vote: As date looms, the Irish ask - how would God vote?

Same-sex marriage

As date looms, the Irish ask - how would God vote?
The underworld is going freelance: Why The Godfather's Mafia model is no longer viable

The Mafia is going freelance

Why the underworld model depicted in The Godfather is no longer viable