Archived posting to the Leica Users Group, 2005/01/25
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Below is a story from "The New York" times regarding LVHM's strategic
future. I swear, I did not make up the "Falic Group." Honest!
Buzz Hausner
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January 25, 2005
LVMH Sells Fashion House to Falic Group
By THE ASSOCIATED PRESS
Filed at 2:49 p.m. ET
PARIS (AP) -- LVMH Moet Hennessy Louis Vuitton SA has sold its Christian
Lacroix fashion house to U.S.-based Falic Group, a spokeswoman for the
French luxury goods giant said Tuesday.
LVMH spokeswoman Florence Scheller said the deal ``confirms LVMH's strategy
of concentrating on its star brands which have the most growth potential.''
The group's most profitable brands include Louis Vuitton and Christian Dior.
Scheller refused to disclose the financial terms of the deal.
LVMH has been disposing of its less profitable brands for some time and had
already sold U.S. cosmetics brands Hard Candy and Urban Decay to the
Florida-based Falic Group, which has interests in the fashion, luxury goods
and duty-free retailing sectors.
But the sale of Christian Lacroix is a big step for LVMH's chairman and
controlling shareholder Bernard Arnaud, who helped found the label together
with its namesake designer in 1987.
It also comes at a time when many fashion houses are struggling to make
money from their expensive and original haute couture ranges. Scheller
declined to say what if any guarantees the deal included for Christian
Lacroix's haute couture production.
A person familiar with the sell-off talks said Falic made Lacroix an offer
to remain at the label and continue designing haute couture but said the
offer had yet to be accepted and terms negotiated.
``The financial conditions that Christian Lacroix demands will be an
important element of the negotiation,'' said the person, who spoke on
condition of anonymity.
``Either way (the Falics) want the brand, with or without the haute
couture,'' the person said.
Tuesday's announcement came hours after Lacroix presented his Spring-Summer
haute couture collection in Paris.
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