According to Fashionista LVMH, which boasts a portfolio of over 50 luxury brands ranging from Louis Vuitton to Moet & Chandon, is said to be gearing up to sell off a few of its under- performing designer brands. According to sources, Celine, Loewe, DKNY and Kenzo are the brands that are set to go first.
This comes as a surprise as Loewe and Celine have attempted to turn their fortunes around in recent months. Loewe has refocused its energies on its core leather business whilst Celine, having appointed Phoebe Philo as its Creative Director in 2008, is enjoying much praise following the unveiling of Philo's first collection for the brand.
Only time will tell if such efforts will be enough to avoid facing the chopping block as it seems that LVMH still intends to press on with plans to find serious buyers. According to a New-York based investment adviser, "I am seeing a lot of labels for sale right now at prices that are still too high. If fashion houses don't realize their brands aren't worth what they used to be and the couture consumer is shrinking then they are going to have a hard time getting Wall Street to come to the table."