REPORT: Lanvin Employees In Turmoil Following Alber Elbaz Dismissal
October 30, 2015
While the luxury industry's collective head is still spinning from the unexpected turn of events at some of the most prominent labels in Paris, it looks like the story of Alber Elbaz at Lanvin might not be completely over. WWD is reporting that the house's 330 employees are devastated that the beloved designer has been pushed out and are using whatever resources available to them to protest. The company's works council, an employee board that that French companies apparently have, is demanding that Taiwan-based Lanvin owner Shawn-Lan Wang return to Paris to answer their concerns and hear their pleas to reinstate Elbaz.
Shortly after Elbaz's departure from Lanvin was confirmed, it became clear that he did not resign, but was dismissed by the owner over disagreements not about the label's creative direction or his workload, but about business issues, specifically, Ms. Wang's failure to secure sufficient financing to successfully support Lanvin's continued growth. Elbaz, along with other minority shareholders, have been pressuring her to sell her majority stake to someone better able to fund the company's expansion, specifically the rollout of more company owned boutiques. This is an area where Lanvin lags behind its competitors, receiving only about 20% of its revenue from its own stores, causing it to rely too heavily on the wholesale business. This has slowed Lanvin's growth as well as development of ancillary divisions like handbags and accessories. WWD had previously reported that Ms. Wang has been reluctant to sell, demanding too high of a price for the company and requiring a handpicked buyer which .
Whether Lanvin's employees have the clout to reverse their boss's decision, or Elbaz will even return if asked remains to be seen, but it seems that Ms. Wang has not only turned out her golden goose, but also alienated the rest of the company, whose support she will need to move forward.
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