French fashion house Christian Lacroix SNC has filed a request to a Paris commercial court to protect it from creditors, the company announced in a statement on Thursday.

The fashion house, which is known for its colorful gypsy-themed clothes, has not turned a profit since its creation 22 years ago.

Christian Lacroix's owners, the Falic Group, a U.S.-based duty free store operator, has been trying to sell a stake in the company for a year. In the statement, Christian Lacroix's Chief Executive Nicolas Topiol said efforts to sell a stake in the company were "directly hit" by the financial crisis.

The company added that Falic would continue financing the fashion house until a suitable buyer was found.

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The Falic Group bought Christian Lacroix in 2005 from French luxury group LVMH Moet Hennessy Louis Vuitton (LVMUY). Under its new owner, Christian Lacroix expanded in the U.S., opening new stores in New York and Las Vegas. In an attempt to boost revenue Falic Group has tried to play up Lacroix's reputation for haute couture - the highest-end of the fashion scale. This long-term strategy was "dramatically hindered by the current and ongoing world financial and economic crisis," the company said in a statement.

As demand for luxury goods has slumped, major retail stores have held back on buying new Christian Lacroix products. In April, Neiman Marcus Group Inc. (NMGA) and Saks Inc. (SKS) said that they had reduced orders for fall 2009 Lacroix merchandise. In 2008, Lacroix posted a loss of EUR10 million. So far, sales of the brand's 2009 summer women's ready to wear line are down 35%, according to a Lacroix spokeswoman.

The fashion house said that it expects the court's decision on whether to accept its request for protection from creditors to come next week.

-By Max Colchester, The Wall Street Journal