Mulberry to close Paris store, will return once tourism picks up

Luxury handbag maker Mulberry said on Tuesday that it was ending the lease on its Paris store early and will open a new store in the French capital once tourism picks up again.

Mulberry said it will receive £13.2m once it leaves the site on the Rue Saint Honoré. Net proceeds after tax, which are expected to be around £10.8m, will "strengthen further the company's cash position and support investment opportunities in line with its strategic plans," it said.

The retailer said it plans to open a new store in Paris once international tourism returns. "The objective will be a location which supports the company's omni-channel approach and optimises its customer centric retail experience," it added.

At 0950 BST, the shares were down 3% at 291p.