Debts Knock Down House of Lacroix

He was a symbol of French fashion, the creator of clothes illuminated by the colours of his native Provence and by his extraordinary artistic talents. But yesterday, the house of Christian Lacroix was reduced to little more than a small trading office as it crumbled under the weight of debts and losses, The Australian reported. After six months in administration amid a desperate search for a saviour, Lacroix was forced to abandon haute couture as the Paris Commercial Court approved a restructuring plan. Last year, as recession prompted wealthy fashion followers to cut back their spending, his house, which has never made a profit in 22 years, ran up losses of almost €10 million ($16 million) on sales of about €30 million. Lacroix owed €14 million to suppliers and €30 million to the Falic Group, the duty-free retailer that bought the company in 2005. Read more.