Luxury brand Christian Lacroix is to cut most of its staff and close its main clothing design business after a court approved a restructuring plan.
The French fashion house will shed 100 staff, leaving just 11 employees to manage its accessories and perfumes.
The fashion label has never made a profit and earlier this year was forced to seek bankruptcy protection after incurring â‚¬10m ($15m) in losses.
However, prospective buyers for Lacroix can still negotiate directly with its owners – Florida’s Falic Group.
Gulf investor Hassan bin Ali al-Nuaimi and France’s Bernard Krief Consulting both indicated interest in buying the firm, but missed a deadline to provide financial guarantees.
Last night the French minister for industry, Christian Estrosi, said he “had not lost hope” for the house.
Mr Estrosi said French diplomats in the UAE would â€œalert the sheikh to the urgency of the situationâ€ with the label.
Source: BBC - Photos: Getty Images