Luxury fashion house Mulberry has shut its shop in Paris because too few tourists are visiting the city.
The handbag-maker has ended the lease at its boutique on upmarket Rue Saint-Honore.
Mulberry will receive £13million back from a rent deposit it had to pay when it moved in, and will bank £10.8million of this after tax.
Adieu: Handbag-maker Mulberry has ended the lease at its Paris boutique on upmarket Rue Saint-Honore
It will leave by September, two years earlier than planned. France has been badly hit by Covid and is bracing for a fourth wave this year as the Delta variant spreads.
This has prompted fears that further restrictions or lockdowns could be introduced – though tourism is still expected to take years to recover to pre-pandemic levels.
Mulberry said the money saved could go towards new investment.
The AIM-listed company was founded in Somerset in 1971 by mother-and-son duo Roger and Joan Saul and has become renowned for its leather goods.
Mulberry said it would reopen a shop in the city when international tourists start returning.
Shares rose 1.7 per cent, or 5p, to 305p.
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