Business: Shaw-Lan Wang To Inject Fresh Cash Into Troubled House Lanvin

Lanvin Men’s Fall 2017 Collection

PARIS — 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). Today Tuesday (November 7), it was announced that majority shareholder and Taiwan-based businesswoman Shaw-Lan Wang would inject fresh cash into the label by the year-end.

The Chinese media magnate had been reluctant to further invest in the challenged label, which plans to explore new revenue streams through high-end homeware and hospitality projects.

Auditors at the privately-owned firm have filed a warning with a commercial court in Paris over its financial troubles, Reuters reported on Monday.

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.

“Madame Shaw-Lan Wang has always believed in Lanvin and believes in its future and in its talented teams,” Lanvin said.

Elbaz‘s exited was followed by a slump in sales, however, which is forecast to deepen this year by another 30 percent after a 23 percent drop in last year, sources said.

Nicolas Druz, a close advisor of Wang‘s who has just been appointed deputy managing director, told Reuters on Tuesday that Lanvin was looking at branching into new avenues such as “art of living” products, which usually includes high-end homeware.

The label could also look at hotel projects using the Lanvin name, he said, without elaborating on how this might work.

“It’s not just about new capital, we’re thinking about other revenue streams too,” Druz said.

Lanvin is on its second designer since Elbaz, his replacement, Bouchra Jarrar left the troubled house this past July after 15 months and two collection (see it here), French designer Olivier Lapidus is Jarrar‘s successor (see it here).

In the beginning of this year, DM Fashion Book reported that Qatari owner of Valentino, Pal Zileri and Balmain was in talks to buy Lanvin (see it here).

Lanvin Men’s Fall 2017 Collection

Photos Credit:  Kim Weston Arnold / Indigital.tv 

Source: BoF