Design star walks at troubled Prada

PRADA has parted company with top Austrian designer Helmut Lang, the latest shock departure in a turbulent time for the luxury goods industry.

The Italian catwalk giant, favoured by stars such as Madonna and Elizabeth Hurley, said Lang had decided to step down as creative director of the brand that shares his name.

Prada bought the Helmut Lang fashion house in 1999 when the New York-based designer was the byword for urban cool.

He is thought to have fallen out with Prada chief executive Patrizio Bertelli over the strategy needed to push his label back into the black. It lost several million euros last year.

In a statement today, Bertelli thanked Lang for his achievements in building a brand with a 'strong identity and a unique positioning'. He added: 'We will build on this and move quickly to provide appropriate support to the company and develop the brand's potential.'

Lang's departure is a further sign that fashion executives seem to have lost patience with high-profile, high-spending designers. A similar spat at Gucci last year led to Tom Ford leaving the company. Luxury goods makers are having to cut back and focus on core brands as they continue to struggle to resurrect sales in the wake of 9/11.

Moet Hennessy Louis Vuitton is in exclusive talks to sell its iconic couture house Christian Lacroix to an American duty-free group run by the Falic brothers.