Christian Lacroix “has filed a voluntary petition with the Tribunal de Commerce de Paris to put itself under the protection of the courts,” but it intends “to present a continuation plan” and “to maintain its business operations throughout the proceedings.”

It has launched bankruptcy proceedings due to the sharp decline of the luxury industry driven by the global economic recession, founded in 1987, Christian Lacroix, known for its colorful gowns, was acquired from Paris-based luxury group LVMH in 2005 by U.S. duty free giant Falic.

With 125 employees, the company registered loss of 10 million euros (about 13.86 million U.S. dollars) last year for a turnover of 30 million euros, and sales of 2009/2010 winter collection show in March fell 35 percent.