Christian Lacroix insolvent

French fashion house Christian Lacroix today began insolvency proceedings after falling victim to the global recession.

The brand founded by French designer Christian Lacroix told the Paris commercial court that it cannot pay creditors, blaming “the consequences of the global financial crisis which has sharply hurt the luxury goods industry”.

The company, which employs 125 people, said it is seeking protection from creditors in order to continue operations.

Chief executive Nicolas Topiol said Lacroix’s owner, the Falic Group, had been talking with investors but the talks fell through because of the financial crisis.

The Falic Group, a US duty-free retailer, bought Christian Lacroix from Paris-based luxury goods empire LVMH Moet Hennessy Louis Vuitton.