John Galliano has lost his wrongful dismissal case against LVMH.

The fashion designer - who launched the case against the parent company of his eponymous label and Christian Dior from which he was fired in 2011 - has been ordered to pay both the brands €1 each after the labour court in Paris threw out his claim.

Galliano, 53 - who was dismissed as creative director of Dior for making racist slurs outside of a Parisian café - alleged the company owed him between €2.4 and €13 million in damages on the grounds they knew about his struggle with drugs during his time with the brand and claimed they had neglected a duty of care to him.

WWD reports that Galliano said from the courtroom: ''The two companies were fully aware of my state I took Valium so I could get through fittings.

''I can't let the 17 years I spent and enjoyed at Dior be blackened like this. During these years as creative director of this house, I did not realise that its success, multiplying its sales by four, came at a destructive and exorbitant cost: my physical and mental health. Always more work, always more obligations, always more pressure, a dangerous and pathological spiral, without control.''

However, things are still looking up for the Gibraltar-born designer after he was announced as the new creative director of Maison Martin Margiela earlier this year.

Galliano was recently said to be assembling his dream team to support him in the role - including Dior muse Vanessa Bellanger, Alexandre Roux, former Roberto Cavalli employee Jean-Yves Mustiere and Galliano's former studio manager Rafaele Hardy - although the French fashion house refused to comment on the claims.