Trouble for French fashion house

French designer Christian Lacroix founded the brand

French fashion house Christian Lacroix SNC has launched insolvency proceedings, it has announced.

The 22-year-old brand - known for its colourful gowns - told the Paris commercial court that it could not pay its creditors.

It blamed the global financial crisis which has hit the luxury goods market.

The company, which employs 125 people, said it was seeking protection from creditors in order to allow it to continue operations.

The brand was founded by French designer Christian Lacroix, and was bought from Paris-based luxury goods group LVMH by The Falic Group, based in the US, in 2005.