Employees at Lanvin afraid of potential jobs cuts following sales dip

London - It seems as if French fashion house Lanvin has yet to complete a full turnaround following the appointment of its new creative director Bouchra Jarrar. Staff at Lanvin are said to be waiting in fear for a fresh wave of job cut following news that the brand’s new creative head was unable to boost sales out of the red in 2016, according to Reuters.

The new creative head, who was appointed last March, designs have yet to strike a chord with the public, as numerous pieces on Lanvin website are currently on sale for up to 50 percent. In addition, the fashion house has been struggling to attract sufficient new customers following the decline in luxury spending and fighting against under-investment, as controlling shareholder Shaw-Lan Wang is said to be unwilling to inject fresh capital into the brand.

She is also said to have stopped private investor and associate Ralph Bartel, from investing more cash into the fashion house as it would affect her stake in Lanvin. "It is clear that the company's situation is deteriorating fast and now it is in a stalemate," one source said to Reuters. "But since Mrs Wang simply refuses to sell or [let the capital] be diluted, there is nothing we can do about it. It is so sad for the brand and its staff."

The French fashion house hired advisory firm Long Term Partners to carry out an audit and its findings, which are set to be presented to the company’s board sometime at the end of this month, will include areas the fashion house can cut its cost base, according to the report. The fashion house is expected to report a net loss of over 10 million euros for the fiscal year 2016 in comparison to profits of 6.3 million euros reported in fiscal 2015.

Photo Credit: By HerryLawford (herry) [CC BY 2.0 ( http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons