French couturier Christian Lacroix has filed for court protection from creditors. The voluntary petition, similar to Chapter 11 bankruptcy protection in the U.S., was filed with the commercial court in Paris, which will decide whether to restructure or liquidate the company, according to The New York Times.
The haute couture fashion house was founded in 1987 by Bernard Arnault, chairman and chief executive of LVMH Moët Hennessy Louis Vuitton. However, since its inception, the company has failed to break even. Arnault sold Lacroix in 2005 to the Falic Group, a Florida-based business known for its Duty Free Americas chain. The owners had been in discussion with potential financial partners and investors for the last year, but a deal could not be finalized once the recession hit.
Lacroix operates two stores in the U.S., in New York and Las Vegas.