Luxury fashion house Christian Lacroix, which declared itself insolvent last week, has been placed under administration for a period of six months following a hearing at a commercial court in Paris, according to the company's lawyer.

Christian Lacroix's US owners Simon and Léon Falic, who acquired the company from LVMH in 2005 and president and CEO, Nicolas Topiol, were present at the hearing but did not make any comment on the court's decision.

Explaining its insolvent state, ahead of the hearing, the company claimed it had been "hit by the world financial crisis which is having a significant impact on the luxury goods sector," adding that  it would propose a continuation plan to the court and intended to maintain its activities during this period.

Designer Christian Lacroix, who created the haute-couture label in 1987, revealed in the French press that he was owed EUR1.2m by the company and had worked on collections for free over the past months.

By Stuart Todd.