Claude Montana set Lanvin back $50M — then his own label went bankrupt

Claude Montana founded his fashion house in Paris in 1979, managed by his sister Jacqueline. His sharp-shouldered, structured leather designs made him one of the defining figures of 1980s fashion — a favourite of Grace Jones and known as the 'king of leather.' The label grew rapidly, and Montana was appointed artistic director of Lanvin in 1990, the most prestigious job in French fashion.

At Lanvin, Montana's bold vision was critically acclaimed but commercially disastrous — his designs cost the house an estimated $50 million in losses. He was replaced in 1992 and returned to his own label, which was already struggling. Montana changed manufacturing partners three times — from Genny to Gruppo GFT to Groupe Mendes — each switch costing time and money. In 1996, Clarins bought Parfums Montana for $154 million, but the cash did not fix the core business.

In 1997, Montana sought bankruptcy protection for his company. The label that had defined 1980s fashion was unable to pay its debts. In 1999, the company and the rights to his name were sold to an investment group led by Jean-Jacques Layani, with Montana required to work for the new owners through 2008.

Montana attempted relaunches — a ready-to-wear line called Odyssée in 1998 and a sportswear line called Montana BLU in 1999 — but both failed due to financial turbulence, mismanagement, and shifting fashion trends. After his contract ended, Montana retreated from fashion entirely and became a recluse, rarely seen in public.