The global financial crisis’s affect on fashion has taken a new turn with Yohji Yamamoto filing for bankruptcy protection on Friday following the likes of Christian Lacroix and Escada to reveal money struggles in the last few months. As one of Japan’s premier designers, the New York Times reports that the fashion house’s debt totally about USD$67 million at the end of August 2009 with the Teikoku Databank.
But there is hope with news that a United Arab Emirates Sheikh Hassan Ben Ali al-Naimi has made a formal offer to take over Christian Lacroix, four months after the French couture house filed for bankruptcy. The offer has yet to be approved, but there is hope of a positive ruling in a Paris competition tribunal before the end of the month.
Meanwhile Reuters reports that German fashion house Escada has attracted 10 – 20 potential investors from fashion companies, financial investors and wealthy families after they filed for insolvency in August.
Our fingers crossed so that everything works out for all three fashion houses.