Three Florida brothers are negotiating to buy iconic French fashion designer house Christian Lacroix from luxury goods group LVMH.
It is understood a sale for between €1-€2 million could be concluded next week. However, it is unclear whether Mr Christian Lacroix, revered in France for his ornate and richly coloured clothes, will choose to remain with the business. His contract expires this year.
The Falic family, headed by brothers Leon, Jerome and Simon, owns North America's largest duty free retail operation, Duty Free Americas, as well as retail and distribution assets in Latin America. The family made its fortune with the Perfumania chain in the US, the country's leading discount retailer of designer and branded perfumes, which was sold six years ago.
It is understood the Falics are keen to expand the Lacroix brand into Latin America where its warm colours and elaborate designs - inspired by the landscape of the designer's Provencal childhood - could find a ready market.
Mr Simon Falic said the family believed it could double the size of the brand within three years by opening additional retail outlets, expanding licences and distributing it through the duty free network. For LVMH, the disposal marks a further step in its restructuring programme which has seen it sell a number of non-core brands such as Ebel watches, Hine cognac and Pommery champagne.
The sale of Lacroix also marks a symbolic break with the past for Bernard Arnault, LVMH's chairman. Lacroix was the first couturier launched by LVMH in 1987. Having enjoyed immense success in the late 1980s - the designer is credited with popularising the puffball mini-skirt - Lacroix's appeal outside France has fallen foul of 1990s minimalism.
It is understood the Lacroix business has rarely made a profit and last year turned in a loss of €1.5 million on sales of about €30 million. - (Financial Times Service)
