China’s Fosun International has won the race against Qatar’s Mayhoola for troubled French fashion brand Lanvin, which would see the former invest over 100 million euros (122.8 million dollars) in the label, reports Fashion Network, quoting sources familiar with the development.
The agreement that got inked later on Friday will see Lanvin issuing shares to its new controlling shareholder. Chinese-born businesswoman Shaw-Lan Wang, who helds 75 percent stake in Lanvin will lose her stake and have a minority stake along with Swiss businessman Ralph Bartel, who resigned from the company’s board in July 2016.
Fosun International gains control over Lanvin
In July last year, Reuters reported that auditors for the French fashion house filed a warning with the Commercial Court in Paris regarding financial crisis at the label. The company founded by Jeanne Lanvin in 1889, had predicted a 30 percent drop in sales for 2017 following a 23 percent sales decline witnessed by the firm in 2016.
Before Christmas, the report added, creative director Alber Elbaz who was fired from the company after fourteen years of service, won his claim against Lanvin’s parent company, Jeanne Lanvin SA for removing him from the position before his contract ended. Out-of-court settlement saw Elbaz getting over 10 million euros (12.2 million dollars) in compensation, further putting a dent in Lanvin’s finances. After Elbaz’s exit, the label has seen change in artistic director’s role twice. Bouchra Jarrar joined the label in 2016, followed by the current artistic director Olivier Lapidus.
Fosun International is controlled by Shanghai billionaire Guo Guangchang having stake in insurance and trading among others including knitwear band St. John in the United States.