Stella McCartney's flagship London store is reportedly set to close after facing significant financial losses.
The acclaimed fashion designer is said to be attempting to stem losses by shutting her high-profile store on Old Bond Street—nine years before the lease expires.
Latest accounts filed by the company show annual losses of £25 million, according to the Mail on Sunday.
Stella, who is the daughter of The Beatles’ Sir Paul McCartney, launched her eponymous store in 2018 after four years spent meticulously fitting it out in opulent style.
Among its most avant-garde features is a pink faux fur-lined elevator, dubbed the "Stella-vator".
The 18th-century building, which is Grade II-listed, was fully kitted out with designer furniture, including an original Mario Bellini sofa worth £20,975 and decorative rocks sourced from the family farm in Scotland.
At the time of its opening, Stella said: "Old Bond Street, it’s probably one of the most prestigious retail locations in the world, it’s an incredible honour for us [to be here]. This store really tells the story of the world of Stella McCartney."
However, despite her earnest efforts, the Stella McCartney brand has not turned a profit since 2017, when it earned £9 million—a year before the mega-store opened in central London.
Company documents further reveal that the fashion house’s turnover nearly halved from £40 million in 2022 to £22 million in 2023.
Besides the London flagship store, the brand operates one other location at Bicester Village in Oxfordshire. Representatives for Stella McCartney have been approached for comment.
In January, it was reported Stella had repurchased a stake in her fashion business from luxury giant LVMH (Louis Vuitton Moët Hennessy).
It marks the latest stake sale by LVMH amid a broader slowdown in the luxury sector.
The French firm confirmed Ms McCartney will buy back the minority stake it acquired more than five years ago. It is understood the designer originally sold a 49% stake in her fashion house to LVMH.
Gucci owner Kering had previously owned part of the brand before selling its stake to LVMH.
In a statement, the companies said: “This new chapter for Stella McCartney reflects her desire to write a new page in her story independently, after working closely with the group to strengthen the fundamentals and governance of her house.”
