French luxury group LVHM (Moet Hennessy Louis Vuitton ) is selling Christian Lacroix, the only fashion house it has created, to the second-biggest US duty-free retailer Falic Group. The news broke last week on the website of the French newspaper Le Nouvel Observateur, Nouvelobs.com. LVHM confirmed that talks with the Falic were underway, but no deal has been signed yet.

LVHM has been debating of the future of the famously money-losing label for several months, but talks to sell the house emerged only last summer. LVMH chief executive Bernard Arnault, who set up Lacroix label in 1987, decided to sell it in order to focus on more lucrative projects.

Designer Christian Lacroix, who is artistic director with the brand but holds no personal stake in his namesake fashion house, was notified of the decision and, as reported Le Nouvel Observateur, was “deeply hurt by the cavalier way his house was sold.” However, Lacroix continues to collaborate with LVHM as a creative director of Pucci, confirmed LVHM spokesperson.

In a phone conversations with The Daily newspaper, Chairman of Falic Group Simon Falic, confirmed the group’s intentions to buy Christian Lacroix. The most important thing for the development of the Lacroix brand, according to Simon Falic, was the creation of revenue, “which will involve developing and opening locations to grow the Lacroix name.”

All Lacroix operations will continue to be based in Paris. The fashion house will showcase during Paris Haute Couture Show on January 25.