Luxury brand Christian Lacroix is to cut most of its staff and close its main clothing design business after a court approved a restructuring plan.

The French fashion house will shed 100 staff, leaving just 11 employees to manage its accessories and perfumes.

The firm entered administration in June, after being hit by falling sales, and has failed to find a buyer.

However, prospective buyers for Lacroix can still negotiate directly with its owners – Florida’s Falic Group.

Gulf investor Hassan bin Ali al-Nuaimi and France’s Bernard Krief Consulting both indicated interest in buying the firm, but missed a deadline to provide financial guarantees.

The company’s lawyer, Simon Tahar, said: “The court rejected all the plans that were proposed by the different buyers and retained the plan to continue the company that was proposed by the current shareholders.”

Lacroix lost 10m euros ($14.9m; £9.1m) in 2008 with sales worth 30m euros.

LACROIX
Formed in 1987 by luxury goods group LVMH
Bought by Falic Group, which runs US airport duty free shops, in 2005
Has never made a profit

Via news.bbc.co.uk