The financial crisis has hit the fashion industry.  High-end fashion designer  Christian Lacroix, recently became the recession’s favorite victim.  Recently, the well-known fashion house bearing his name filed for court protection from creditors.  The voluntary petition was filed to the commercial court in Paris.  The court is left to decide whether to restructure or liquidate the company. 

                Potential buyers have expressed interest in acquiring the luxury fashion house.  Unfortunately, the prospective buyers did not submit financial guarantees to represent their proposals by a deadline that expired last Thursday.  Since the prospective buyers missed the date to deposit their checks, the court is now free to decide whether to accept the liquidation plan submitted by the house’s owners. 

                The intended plan envisioned by the owners is to pay off the house’s creditors with its licensing deals and to rid nearly all the employees.  They only intend to keep 11 employees who would administer the house’s accessory and perfume licenses. 

                The fashion house was founded in 1987 by Bernard Arnault, chairman and chief executive of LVMH Moet Hennessy Louis Vuitton.  According to The New York Times, the concept was to start with haute couture, at the apex of the luxury pyramid, and develop from it a range of ready-to-wear apparel, accessories and fragrances.

                Despite the company’s critical success, it never turned over a profit.  In 2008, the house of Christian Lacroix ran up losses of 10 million euros (14.9 million dollars) for sales of 30 million euros.  Lacroix said, “he was forced to declare insolvency due to the sharp downturn of the luxury market.”

                Christian Lacroix fashion house is not the only high-end luxury store being affected by the recession and financial turmoil.  Chanel recently laid off 200 temporary employees and Versace announced that revenue fell by 13 percent in the first quarter. 

                According to the New York Times, “the lessons seem to be that it is now difficult to survive in high fashion without being part of a corporate group that can invest in product development and flagship stores and that the pyramid model is no longer viable.”

                It is disheartening to see this high-end fashion house slowly dwindle and disappear before our eyes.  Christian Lacroix was the last fashion house to be established under formal couture rules.  Even if the house can be restructured, there will still be serious implications.  Although it is only natural for luxury goods to become unnecessary during times of hardship, it doesn’t make it any easier to accept the slow disappearance of designer fashion.  It is impossible to purchase high-end designs at a time like this, but I wish there was a way for the intricate designs and talented designers to remain appreciated.