Luxury Goods maker Christian LaCroix Goes Bust

Christian Lacroix is the first big-name designer to file for bankruptcy courtesy the global financial crisis. His Paris fashion house confirmed on May 28 that it had filed for bankruptcy. No great shocks here, SIL, a French company that made high-end lingerie for luxury brands, including Christian Lacroix, Kenzo, and Sonia Rykiel shut up shop earlier in the year after suffering a steep decline in orders, throwing 130 employees out of work. The company had been in business since the 1960s, and many employees had held their jobs for decades. "It happened very fast, everyone was in shock," says Garcher, who worked at a factory in the town of Nevers in Burgundy.

Christian LaCroix will not be selling any more knickers

These are hard times for almost everyone in the luxury business. Sales are down at all the major groups, including  Louis Vuitton ,Richemont  and Gucci Group. Consultancy Bain & Co. predicts that industry wide revenues, after falling 8% during the last quarter of 2008, will slump an additional 10% to 20% during the first half of 2009. "Luxury shoppers are spending less, traveling less, and feeling less confident. Moscow's luxury goods market has collapsed completely, and the Chinese markets do not seem ready to take up the slack just yet.