Hugo Boss closed down its store on Calea Victoriei
The inevitable has happened this week, one month ahead of our prediction. We have no reservation when we state that Papillon Fashion srl, which used to own the franchised store, actually mocked this prestigious brand. Owned by the Sarkis family, who also own FMCG InterBrands, Papillon has been run in its first year by Nicole Sharif, an inexperienced manager in fashion or retail, be it even mass market. The firsts signs of this bad management case surfaced a few months after the opening. The glass case and the pavement were both in a poor state, and each inside decoration display or case looked old. As in the case of both Eascada Couture and Vivienne Westwood franchises, no prior feasibility study or business plan was made before signing the franchise contract.
We could read articles in two previous editions of ZF, in which the proprietor would complain about counterfeits and sales as an excuse for real facts. Both luxury consumers and journalists agree that it is intolerable for a Boss store to look like it did and sell that kind of goods and services.
We conclude with the fact that this close down turned into an insolvency case that it is in no way connected with the international crisis. This situation went on like this for years in Boss’s case. It is most unfortunate that this kind of negative example turns off all those interested in the luxury industry, but especially those who do not have access to the bigger picture.