Germany-based label Wunderkind, helmed by Dutch designer Wolfgang Joop, has canceled its Paris fashion show and laid off the majority of its employees as part of a major "restructuring" effort. The in-house atelier has reportedly been disbanded, and most of the 50-person staff has been let go.

The clothing line is known for its bold, fantastical prints and patchwork details, but also for its financial struggles. Founded in 2003, the company has never broken even and has lasted thus far thanks to investments by Hans-Joachim and Gisela Sander, who acquired 50 percent of the company in 2007 and then another 15 percent in 2009. Last fall, Wunderkind's executives predicted that the company would break even by 2012, but according to WWD, Sander had gotten impatient with the slow progress. Wunderkind released a statement saying that a "new concept" was being developed between Sander and Joop, but declined to comment further.

Wunderkind Cancels Paris Show, Downsizes [WWD]