Last month my colleague Deidre Woollard reported that French fashion house Christian Lacroix was looking for investors to shore up its business. Now the brand has filed for bankruptcy in the wake of an increasingly bleak financial picture. Lacroix, which is owned by duty free retailer the Falic Group and employs 125 people, has been hit hard by the faltering market for ultra-luxury goods like haute couture gowns. Lacroix chief executive Nicolas Topiol said the economic crisis had "considerably hurt our revenues," the London Times reports. Major retailers recently stopped buying new Lacroix merchandise and last month both Neiman Marcus and Saks reduced their orders for Lacroix apparel considerably. Sales of the Lacroix women's summer collection are down 35% this year; last year the company reported a $15 million loss.

More bad news for luxury brands. HIgh-end department store Neiman Marcus reported that it lost $509.3 million for the quarter ending January 31. It was the first loss during a holiday quarter in recent memory for the company which had a profit of $44.3 million in the same quarter last year.. The quarter was burdened with writedowns totaling over half a billion dollars in addition to offering deep discounts for goods in order to jumpstart lackluster shopping.

The company's chairman told investors that Neiman Marcus will be working with the brands it sells to lower prices and that it will also be paring back its inventory to keep pace with less spending by its customers. The AP's story quotes Neiman Marcus's Burton M. Tansky, during a conference call with investors as saying: "Our customer wants luxury. She has not shown any indication to move away from it. What she is doing is she is just not shopping."

I mentioned back in November that Saks Fifth Avenue would be cutting capital spending in 2009. We are a few weeks in to the year and Saks Inc. has decided to cut about 1,100 corporate and store positions, which represents nine percent of its total workforce. The company has also taken away merit-based wage increases this year for all employees and suspended 401(k) matching. Saks will also be reducing inventory and trimming other expenses wherever they can.

The reason for all these cuts is the lack on consumer spending. Bloomberg quotes Pete Hastings, a fixed-income analyst with Morgan Keegan & Co. who says that this may only be the beginning of department store cutbacks. After the worst holiday season in around 40 years consumers haven't rushed into the stores in January. Saks posted a 20 percent sales decline in December even after major markdowns on their goods.

Neiman Marcus will also be making some similar changes. The company announced it plans to cut 375 jobs, or 2.3 percent of its workforce a response to their own December slump which saw a 28 percent drop in sales at stores open at least a year.

'Tis the season for blankets of snow and frosted branches, ski trips and furry boots, and new handbags to match the winter white theme. Whether you are shopping at Saks, Bergdorfs, Nordstroms, Neimans or Barneys there are clean, colorless clutches, totes and hobos to suit the season. Here are a few of my favorites inspired by the holiday tune, 'White Christmas' that are chic, sophisticated and frosty including the Nablak Vernice Tote from Prada pictured above.

• Coach's Op Art Sabrina - $298 at Nordstroms
• Bottega Veneta's Medium Veneta Hobo - $1,550 at Barneys
• Yves Saint Laurent Medium Calypso Bag - $2,095 at Saks
• Dolce and Gabbana's Washed Leather Dome - $2,125 at Bergdorfs
• Escada Ostrich Shoulder Bag, Small - $3,990 at Neimans

If you've ever really listened to the lyrics to the holiday song, Santa Baby, it details quite a fabulous wish list. Looking around today trying to fulfill every item would make for a bounty of gifts, especially for just one person, but if we were to give it a shot, this is what might end up under the tree:

• 'Santa Baby, just slip a sable under the tree, for me...'
• '...Santa Baby, a '54 convertible too, light blue...'
  
• '...Santa Baby, I want a yacht and really that's not a lot...'
• '...Santa honey, one little thing I need, the deed, to the platinum mine...'
• '...Santa cutie, and fill my stocking with a duplex and cheques...'
• '...Come and trim my Christmas tree with some decorations bought at Tiffany's...'
  
• '...Santa Baby, forgot to mention one little thing, a ring...'

'Hurry down the chimney tonight...'

We've already highlighted Swarovski's Annual Edition Ornament for 2008 but the luxury-minded shopper may have more sparkling needs in the ornament department. This iconic crystal company is offering sixteen other options for glamorous gifts or tree bling at your own home. Snowflakes are the most common design but angels, trees, stars and stockings with a touch of tasteful color will also ring in the holiday season beautifully. Even babies aren't forgotten with the pacifier- or duckie-shaped ornaments to commemorate a first holiday. Faberge's ornaments, available at Neiman Marcus, showcase a familiar egg-shape of mouth-blown glass with delicately handpainted designs. Jay Strongwater's Musical Ornaments at Saks add a sense of frivolity to your tree with a touch of Swarovski bling too. And Bergdorf Goodman is selling L'Objet's Pagoda Ornament which is14K gold-plated and adorned in freshwater pearls and, again, Swarovski Crystals.

A bejeweled tree is bound to make quite a statement during your holiday gathering and an even bigger impression as a gift.

Maybe I have 007 on the brain because of the new Quantum of Solace movie but this Limited Edition Fighter Motorcycle certainly strikes me as something Bond-worthy (I'm sure the photo above has something to do with that impression too). The raw, bare-bones design in nothing but silver steel and black rubber makes for a minimalistic but still "bad ass" look, which the bike backs up with an exciting array of high-tech features and the ability to fly down the highway at speeds up to 190mph.

Available exclusively from Neiman Marcus as part of this year's Chrismas Book, $110,000.

Via Book of Joe

Thanks Nicole!

Did the Republican National Committee spend more than $150,000 on Sarah Palin and her family since she joined the Republican ticket? Politico reports that according to financial disclosure records, bills from Saks Fifth Avenue in St. Louis and New York total $49,425.74 and there is also an astronomical $75,062.63 at Neiman Marcus in Minneapolis early September. The records also show that the RNC spent nearly $5,000 on hair and makeup in September. McCain-Palin spokesperson Tracey Schmitt has issued a statement chiding Politco for dwelling on the matter and saying that "it was always the intent that the clothing go to a charitable purpose after the campaign." As you may recall, Cindy McCain's outfit at the RNC was worth over $300,000 but Mrs. McCain spent that money herself.

The news isn't good for luxury department stores lately. Both Neiman Marcus and Saks have reported that same-store sales fell by double digits last month, numbers that are, as the Dallas Morning News Reports, reminiscent of the post-9/11 declines in 2001 and 2002. Neiman Marcus had a drop of 12.9 percent last month (Neiman Marcus and Bergdorf Goodman stores had a 15.8 percent drop but the Neiman Marcus Direct catalog and online business had a 5.3 percent increase). Saks saw same-store sales fall by 10.9 percent. Both companies also have said they don't expect things to get any better soon, they are predicting weaker sales for the rest of the year. Nordstrom is also suffering with a 9.6 percent decline in September same-store sales. The good news for consumers is that sales will start earlier than usual and discounts will be deeper during the upcoming holiday season. For these three stores especially, it is the return shopper that will sustain them. I predict that these loyal customers will most assiduously courted by the stores with free gifts, deep discounts and other enticements over the coming months so now might be a good time to sign-up for their email alert lists.

Christmas comes early in Dallas. Neiman Marcus has just announced its unveiling of the legendary Christmas Book, full of the rare and exceedingly unusual items that become so many holiday wishlists.

A couple of examples: the entire end zone for you and your friends at a Dallas Cowboy's game, including tailgate party with the Dallas Cowboys cheerleaders, and VIP touches at every turn ($500,000). His-and-hers life-sized Lego sculptures by artist Nathan Sawaya, who claims he can "brickalize" anyone ($60,000 each).

The biggest ticket item in the book? Your own stable of a dozen or so thoroughbreds, trained and managed by Three Chimneys Farm over the next four years. Any race day winnings will be yours, but you'll pay $10,000,000 for the privilege.

Perhaps what Santa hears the most requests for? A Jack Nicklaus-designed golf course. In your backyard. He'll come meet with you, work with his design team to create the course and throw in a bag of clubs, too. Then he'll come play the first round with you and your buddies. For $1,000,000, not including construction.

Various magazines and other sources are reporting that shades of purple are hip for fall. Fashion Week Daily reports that Neiman Marcus has joined the purple push. Their Fall 2008 trend event which runs from August 15 to August 23 will focus on berry colors as well as showcasing other key fall trends such as the return of the lady-like look. Any customer who spends $250 at the store will receive a Neiman Marcus PDA/mobile phone cover in the plummy shade shown at right.

Swiss designer Albert "I cannot work with cheap fabric" Kriemler has gradually built his family-owned brand, Akris, into a luxury power seller. Now serious competition for longstanding luxury brands Armani and Chanel, Akris often outsells both in that elusive upper echelon of fashion. But you won't see the brand on many a young starlet. Akris is not for the trendy, despite a criticized attempt to change things up for the Spring 08 collection. Favored by women looking to be taken seriously -- Condoleeza Rice is a fan, as is Diane Sawyer -- Akris focuses on quality and timelessness, with the seasonless, highly packable fabric to prove it. Yet highly packable translates to highly priced: a cashmere/silk jersey dress is in the $3-4000 range. Check out selections from Fall at Bergdorf's and also at Neiman's. Then browse the gallery to see some evening pieces, and all those gorgeously cut pants. To see some new shapes and a few perfectly draped dresses, check out the Akris resort collection on Style.com, which isn't out quite yet.

Neiman Marcus often saves the droolworthy cars for their big Christmas catalog but this year's spring men's catalog holds a tempting treat for men and women alike: seven special 2008 Hennessey Venom 700 NM Vipers. The special upgraded Vipers do the zero-to-sixty hop in 3.3 seconds and hit a top speed of 214 mph in the hardtop coupe model (it also comes in a convertible version). The sleek back cars also come with matching luggage and entitle you to a day of high-perfomance driving school at Lonestar Motorsports Park. The magnificent seven go on sale on April 10 at 9 a.m. and cost $179,500 each.

Each year we chronicle the Neiman Marcus Fantasy Gifts but we rarely get to hear about who purchases them. This year though, free-spending Victoria Beckham is said to have bought one of them. It is being reported that Posh Spice spent $50,000 on the Treetent at the Neiman Marcus in Beverly Hills. The Treetent was created by Dutch sculptor and designer Dré Wapenaar and has a a nine-foot-diameter hardwood floor and round mattress. It sleeps two adults but she is said to have bought this as a fabulous fort for her three children. it isn't the first time that the Beckhams have bought their children a luxurious treehouse, a couple of years ago they spent around $187,000 for a much-contested playhouse at their English estate.

Sometimes guys want a little bling too, you know? But it's hard to find that right balance of flash and masculinity, and although I'm not claiming this Pavé Diamond Dog Tag by David Yurman does the trick (it's all about personal preference and I'm not even a guy) the mix of pave diamonds and dog tag style seems to at least be in the right ballpark. It has a total of 1.15 carats total with a sterling silver logo, cable trim, "925" inlay, and a sterling silver chain pulling the whole thing together. Available at Neiman Marcus for $1,950.