Fosun International has acquired a controlling stake in the 129-year-old French fashion house Lanvin.

Without disclosing financial details of the deal, Fosun says Lanvin’s shareholders will retain a minority stake. The move comes as Lavin is said to be running out of cash.

“Fosun’s partnership and transformational strategies with resort group Club Med, Tom Tailor and others make us believe it is the right long-term strategic partner to team with,” says Lavin CEO Nicolas Druz.

Founded by Chinese billionaire Guo Guangchang in 1992, Fosun started aggressive overseas expansion and investment in 2010. As well as owning French luxury resort company Club Med, it has a 9.5 per cent stake in jewellery and fashion accessories brand Folli Follie and a minority stake in entertainment company Cirque du Soleil. It also has a JV with global travel company Thomas Cook.

“As China becomes the main growth driver of the global luxury market, we are confident Fosun can bring great incremental value to Lanvin,” says Fosun vice-CFO Joann Cheng.

Lanvin has struggled financially with declining sales following the departure of its star designer Alber Elbaz in 2015, reports Reuters.