Fosun buys French fashion house Lanvin

Chinese conglomerate Fosun has bought a controlling stake in France's longest surviving fashion house Lanvin.

The deal, which was announced on February 22, will see the Shanghai-based investment group acquire 75 percent of the luxury label for an undisclosed sum, reported The Business of Fashion.

According to a source close to the matter, Fosun will invest around 100 million euros (¥778 million) in the business, and Lanvin would "enter a new phase of expansion," Fosun added in a statement.

The cash injection comes at a crucial time for Lanvin, which is facing slowing sales and a cash shortage. Founded in 1889, the couture house is said to be facing a 27 million euros loss in 2017.

Before the takeover, Lanvin was majority-owned by Taiwanese businesswoman Shaw-Lan Wang since 2001. She, along with Swiss businessman Ralph Bartel, will retain a minority stake.

Lanvin is not Fosun's first fashion foray. The group currently owns high-end Italian menswear line Caruso and American knitwear company St. John Knit. They are also not the first Chinese firm to make big moves in luxury retail recently. Just last week, Shandong Ruyi, who owns Savile Row tailor Gieves & Hawkes and Swiss shoemaker Bally, announced its ambition to "develop into the LVMH group of China."

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