Paul Smith Limited, a British apparel wholesaler, is shutting its outlets in Germany.
The brand entered the German market over ten years ago with its first site in Hamburg, which will close at the end of January, alongside the remaining stores in Berlin and Munich. Paul Smith acknowledged the closure of the three stores, after an earlier revelation by industry sources.
“The contracts for our shops in Germany were all negotiated before the Covid pandemic, when consumer behaviours were very different to today,” said a spokesperson for the British company. “The decision to close shops was not easy, especially for staff, but the bottom line was that the brick-and-mortar stores were becoming more unprofitable, despite their good locations,” they added.
However, Paul Smith will not be abandoning the German market entirely. The brand is going to keep concentrating on wholesale and will collaborate with its present partners in the future.
