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    Fashion Brand Lanvin Is At Stake

    2015/12/5 9:45:00 31

    SharesDataEconomyBrandExchange RateFashion

    According to the latest news from Paris, after the sudden departure of Alber Elbaz, the creative director of Lanvin, the tension between the management and staff of the company is getting more and more intense. It is like putting up a knot, causing the internal friction of Lanvin company to aggravate and disturb the government level. Recently, the case was heard in the Supreme Court of Paris.

    On Tuesday, Lanvin's management brought legal proceedings against the Labor Committee of the Supreme Court of Paris, because the Paris Labor Committee took measures to break down Lanvin and suspended the use of its company's e-mail, resulting in the company's failure to function properly.

    As the case will affect Lanvin's economic interests and social reputation, Lanvin Johann Sultan, the solicitor of the company, asks the judge Pnlope Postel-Vinay to suspend the trial "notice right" case.

    Johann Sultan said that Alber Elbaz decided to leave Lanvin after trying to resell its shares to other companies of Lanvin group.

    According to a spokesman for Lanvin company, under the name of Alber Elbaz

    Shares

    It is not directly owned by Alber Elbaz herself. The shares of Jeanne Lanvin S.A.75% are held by Wang Xiaolan, and 25% of the shares are held by Ralph Bartel, while Alber Elbaz's holdings are another company under Wang Xiaolan's name rather than Lanvin.

    Johann Sultan put forward a "high-level meeting" before the court, Alber Elbaz, before Wang Xiao Lan's search for a new buyer of Lanvin.

    As for the reasons why Alber Elbaz still chose to leave Lanvin at last, Johann Sultan said the company did not question his creativity at all.

    But Isabelle Schuck-Niel, an attorney for the Paris labor Commission, retorts that Alber Elbaz was actually assigned to Lanvin by AEK Designs.

    According to the public

    data

    It showed that AEK Designs earned 5 million 600 thousand euros ($7 million 500 thousand) in 2014 and 5 million 900 thousand euros ($7 million 800 thousand) in 2013.

    {page_break}

    Isabelle Schuck-Niel says Lanvin needs to pay severance payments ranging from Albert Elbaz 2000 to Euro 40 million ($27 million 500 thousand to $55 million).

    But Lanvin CEO Michle Huiban earlier told staff representatives that it is still unknown how much the company will pay for the dismissal of Albert Elbaz.

    Isabelle Schuck-Niel stressed, "it's ironic that a company's executives make decisions that fail to determine the cost."

    Isabelle Schuck-Niel stated that since the first loss of Lanvin in 2007, the company's spending hole has been expanding.

    Lanvin's annual profit fell from 11 million 900 thousand euros ($15 million 300 thousand) in 2012 to 5 million 700 thousand euros ($7 million 500 thousand) in 2013, while profits in 2014 continued to plummet by 50% to 2 million 900 thousand euros ($3 million 900 thousand).

    However, Johann Sultan retorts that orders are indeed decreasing, but this is because the instability of the global economy has led to the instability of the euro and the Hong Kong dollar exchange rate.

    In fact, Lanvin only has a good jewelry business, but Johann Sultan claims that Lanvin's business is developing healthily and there is no plan for layoffs.

    Johann Sultan pointed out that recently, the company's loan application to the bank has also gone smoothly. The loan is used to purchase one of Japan's Itochu companies.

    brand

    He accused the Labor Committee of its improper practices, and said that the Labor Committee had no right to suspend the use of the Lanvin network's power, and asked the judge to withdraw the litigation documents initiated by the employee representatives.

    Finally, the two sides' requests were not approved. The Supreme Court of Paris decided to extend the case until the 16 day of this month.

    In essence, the two sides of Lanvin and designer Alber Elbaz are competing for their supporters and reputation. Ms. Wang has sent emails to brand employees to attribute the financial distress to the quality of the design.

    Alber Elbaz responded to these allegations, saying that these were "unreasonable" and would be thrown back to other businesses of the company, referring to the company's lack of strategy and its ability to invest in weak businesses.

    Media reports said Alber Elbaz also threatened to hold a news conference to defend itself. If the company continues to smear itself, he will take legal protection measures.

    Some employees bet that Alber Elbaz will receive support from employees. According to local media reports, employees have been lax after receiving the news of his resignation, and there are signs that the Lanvin division is at stake.


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