Rumor has it that the Tuleh label might soon shutter. The news comes after Tuleh canceled their fall 2010 runway show.

The reason that they may close shop is because Tuleh isn’t currently meeting the demands of its creditors. Trilea Holdings Inc, their former creditors, have reported that they have ceased to invest on Tuleh.

A Tuleh representative stated, “The business has been and continues to be unprofitable, and creditors were making demands that the company could not satisfy.” Though the investor’s demands haven’t been met, the consumers will ultimately suffer if Tuleh shutters due to the label’s popularity.

Moet Hennessy Louis Vuitton has suffered declines in net profit and annual sales in 2009. Though the net sales fell one percent, or $23.48 billion dollars, LVMH insisted that the results were considered “the soundness of its strategy in 2009.”

The profit numbers had gone down eight percent at $2.78 billion dollars this past year. The sales decline came from their Wines & Spirits, Perfumes & Cosmetics, and Watches & Jewelry divisions. Where the company saw a profit was on their Fashion & Leather Goods division, which includes, Givenchy, Leowe, Louis Vuitton, and Marc Jacobs.

Though the results were mixed, what is apparent is the market’s stabilization. LVMH Chairman and CEO, Bernard Arnault stated, “Louis Vuitton in particular delivered another year of growth and has fortified its leading position.”

British label Burberry has won a counterfeit lawsuit versus Designer Imports. The settlement, which took place in the U.S District Court in Manhattan, awarded Burberry the sum of $1.5 Million dollars.

In 2005, Burberry had sued Designer Imports, an online retailer and importer, which led them to stop selling fakes. Initially, Burberry had been seeking $6.5 million dollars, but will receive $1.5 Million for damages instead.

The results of this lawsuit may encourage other labels to go after companies that encourage selling counterfeit goods, specially in New York.

Due to the continuing economic struggle in the fashion industry, Yohji Yamamoto has closed two stores. The stores that have shuttered are both located at New York City.

This may be the result of Yamamoto’s label filling for bankruptcy protection last October. The house had also closed their US press office last year. Though the label continues to have current difficulties, the Y-3 line with Adidas continues to be strong.

Designer Hussein Chalayan has recently bough back the majority stake of his own label. Due to financial issues, he had sold Chalayan to Puma in February 2008.

Hussein Chalayan will continue to oversee design, creation, and development in Puma as Puma’s Creative Director. Chalayan will now independently manage and have full control of his label without Puma’s aid.

Source: StyleList

Though Prada has been managing their debt quite successfully, rumors have resurfaces that indicate that the label may sell a minority stake. The buyers of the stake may be Richemont, owners of Cartier and Montblanc, are in deep talks to buy one third of the company.

This could be good and bad news for Prada since it may give the jewelry giant, Richemont, a large stake of ownership. This also means that this move could expand Prada into a global luxury label that will compete with companies like LVMH.

Ultimately, this means that Prada will be able to expand into markets such as China. Currently, Patrizio Bertelli, the CEO of Prada and husband of Miuccia Prada, owns 95 percent of the label. If the rumors are true, this may significantly change in the near future.

Source: The Cut

Macy’s has announced that they will be closing five of their stores due to poor store performance. The location for these stores are located n Waterford, MI, St. Ann, MO, Missoula, MT, Burlington, NJ, and Boise, ID.

Terry Lundgren, Chairman of Macy’s, said in a statement release, “We are committed to maintaining a healthy portfolio of stores, which requires us to make the difficult decision to close some stores that no longer meet our performance requirements.”

This comes from news that Macy’s Inc will be opening a Bloomingdales in Santa Monica, CA and in Dubai, which will be their first international location. The victims will be the consumers who will have to look for alternatives.

Source: StyleList

On a bumpy global economic recovery, the fashion industry has taken a big hit. We’ve even experienced the legend Lacroix close down. Now, the Hugo Boss house has announced that they will be closing down their Cleveland plant.

The worst news is that approximately 300 employees will be laid off, about one-third of Hugo Boss’s American workforce. The reason the label is closing the Cleveland plant is because it “is not globally competitive.”

Source: StyleList

Chief executive officer of Phi, Julia Hansen, has announced that the label will be closing shop due to economic conditions. Phi was established in 2003 by Susan Dell, Michael Dell’s wife.

Julia Hansen stated, “It’s a really challenging climate right now for luxury goods. There is not so much confidence in that market going forward.”

Source: The Cut

After the Ajman Sheikh failed to rescue the Lacroix label, a French court agreed on a restructuring plan. This means that Christian Lacroix’s couture, ready-to-wear, and retail operations will have to be shut down.

The good news (if any) is that the label will be involved with licensing deals, including haute couture. Who knows, but the Sheikh’s deal could still go through because talks are in the process with potential buyers.

Source: Reuters