Lanvin Continues To Struggle, The House Is Seeking Ways Other Than Capital Raise To Revive Business

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Lanvin Men’s Fall 2017 Collection

PARISLanvin continues to struggle!

Struggling luxury label Lanvin, which is also France‘s oldest fashion house, suffered a sales slump ever since Alber Elbaz was shockingly fired in 2015, after 14 years at the house (see it here). Last month, Tuesday (November 7), DM Fashion Book reported it was announced that majority shareholder and Taiwan-based businesswoman Shaw-Lan Wang would inject fresh cash into the label by the year-end (see it here).

The expected cash injection 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, confirmed.

The shareholders’ meeting planned for Nov. 23 to decide on the capital increase was postponed to Nov. 29 and then to Dec. 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”.

It would solve its cash flow problems and revive the development of the company“, he added.

In November 2017, we also reported that “A recapitalisation was needed to buy some breathing space or Lanvin would struggle to pay employees’ salaries in January, several sources had said, adding that a cash injection was likely by the end of 2017.”

Lanvin said in a statement it was working on its new strategy and that Wang, a Chinese-born media magnate who owns 75 percent of the firm, would put more money in, without detailing how much. The company does not publish earnings.”

The funds would be used to back future projects to help reposition Lanvin,” the firm added.

Lanvin Men’s Fall 2017 Collection

Photos Credit: Kim Weston Arnold / Indigital.tv 

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Donovan

Donovan is the CEO and Editor-In-Chief of www.dmfashionbook.com. For all general inquiries please email don@dmfashionbook.com Donovan has a BA in Journalism & Media Studies from the prestigious Rutgers University. He's currently studying entertainment and fashion law.

1 Comment

  1. Arissasso

    December 28, 2017 at 7:15 pm

    If Lanvin is struggling why don’t they just target a sub culture, feature a non famous person with a artistic profession in like culinary arts, beauty, or even feature a psuedo celeb- social media influencers. Nowadays those are who the new school is idolizing, youtube gurus and personalities. Step out the box. Fresh out the box.