PARIS — Paco Rabanne is in flux — but not out of fashion.

The Paris-based house, owned by Spain’s Puig Group, has informed retailers it will not ship its fall-winter collection while it restructures, market sources said.

It is understood that the house aims to wind down its high-cost Paris operations, which involve some 40 employees, but will not exit the apparel business. Rabanne is said to be considering several options, including a manufacturing partnership and a possible repositioning of its designer line.

Patrick Robinson, an Ameri­can designer brought in to reenergize the house in 2004, is still working at Puig’s 26th Street offices in Manhattan and is expected to remain at the design helm.

Mario Grauso, president of Puig Fashion Group, could not be reached for comment on Thursday. It is understood that Rabanne’s fragrance business is not affected by the changes.

This story first appeared in the June 16, 2006 issue of WWD. Subscribe Today.

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