Lanvin in financial trouble, FY17 sales expected to drop 30 percent

Auditors for France’s fashion house Lanvin said to have filed a warning with the Commercial Court in Paris regarding financial crisis at the label, reports Reuters sighting industry sources. As per the French company law, auditors must file a court warning when the company faces financial troubles in operating the business.

The fashion house founded by Jeanne Lanvin in 1889, the report added, has predicted a 30 percent drop in sales for 2017 that follows a 23 percent sales decline witnessed by the firm last year. Reuters further said quoting the sources familiar with the matter that a recapitalisation which was supposed to take place in September, may happen by the end of the year.

Industry sources speculate that after the company’s creative director Alber Elbaz was fired after fourteen years of service, the label lost its sheen and has seen changes in artistic director’s role twice since then. Bouchra Jarrar joined the label in 2016 after Elbaz’s exit followed by the current artistic director Olivier Lapidus. However, both have failed to revive Lanvin’s sales.

Chinese-born businesswoman Shaw-Lan Wang holds 75 percent stake in Lanvin with the remaining held by Swiss businessman Ralph Bartel, who resigned from the company’s board in July this year. To control costs, the company is also taking various measures including shuttering unprofitable stores, cutting down on advertising costs and changes to the management, the report adds. The company recently appointed Nicolas Druz, as the Deputy Managing Director.

Picture:Facebook/Lanvin