PARIS, Dec 21 (Reuters) - 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 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.
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.
Reporting by Pascal Denis; Writing by Maya Nikolaeva, editing by David Evans