Bernard Arnault, chairman of the world's largest luxury goods group LVMH, is planning to sell the loss-making Christian Lacroix fashion house to a US duty-free retail group according to newspaper reports today.

A report on weekly magazine Le Nouvel Observateur's website said that LVMH showed its sale proposals to Lacroix's works council this week, and that discussions are currently being held, although no sale has yet been agreed on.

The Falic Group, which has annual sales of $620 million, is controlled by the Falic brothers.

LVMH has recently been trying to sell off its loss-making and non-core businesses in order to focus on its stronger brands.

Lacroix is the only couture label within LVMH that Arnault set up from scratch.