The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — The planned capital increase at France's oldest fashion house Lanvin has not taken place, and the company is looking for other ways to get through its financial troubles to revive the business, its managing director, Nicolas Druz, told Reuters.
Lanvin, which has suffered a sales slump since a design shake-up two years ago, said in November that majority shareholder and Taiwan-based businesswoman Shaw-Lan Wang would inject fresh cash into the label by the year-end.
The shareholders' meeting planned for November 23 to decide on the capital increase was postponed to November 29 and then to December 20, and eventually never took place, two sources said.
Contacted by Reuters, Nicolas Druz said that "sustained financial and industrial solutions that do not involve capital increase will be found by end of March."
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It would solve its cash flow problems and revive the development of the company, he added.
Several sources said in November a recapitalisation was needed to buy some breathing space or Lanvin would struggle to pay employees' salaries in January, adding that a cash injection was likely by the end of 2017.
"Salaries for December, January and February will be paid," Druz said.
The label, which dates back to 1889 and was named after couturier Jeanne Lanvin, has long been synonymous with Parisian chic and had enjoyed a revival in recent years under former star designer Alber Elbaz.
His surprise sacking in 2015 was followed by a slump in sales. The company does not publish earnings. Lanvin's revenue fell 33 percent to 96.9 million euros this year after a 23 percent dive in 2016, one the of sources said.
By Pascal Denis and Maya Nikolaeva; editor: David Evans.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.