(Adds Lanvin confirmation)
By Pascale Denis
PARIS, July 6 (Reuters) - France's oldest fashion brand Lanvin said designer Bouchra Jarrar no longer worked for the company, confirming a report published by Reuters earlier on Thursday.
Founded in 1889, Lanvin is one of France's last major independent fashion labels in an industry dominated by multi-brand groups such as LVMH and Kering.
It has been in turmoil since the shock sacking in 2015 of previous designer Alber Elbaz after a boardroom dispute and faces a deepening crisis amid slumping sales.
"Lanvin and Bouchra Jarrar have mutually decided to put an end to their collaboration. This decision is effective as of today," the fashion house said in a statement, adding: "Bouchra Jarrar will now concentrate on new projects."
Earlier on Thursday, a source told Reuters that Jarrar, appointed in March 2016, "was seriously weakened by the lack of success of her collections."
Lanvin fell to a net loss of 18.3 million euros ($21 million)last year, its first in nearly a decade, from a profit of 6.3 million in 2015, sources told Reuters last month. The loss is seen widening to 27 million euros in 2017, the sources said.
Another source with access to the company's results said sales fell 23 percent last year to 162 million euros and slumped a further 32 percent in the first two months of 2017.
$1 = 0.8770 euros Writing by Ingrid Melander; Editing by Susan Thomas and Mark Potter