Amsterdam-based fashion imprint Daily Paper will divest its New York City flagship in an effort to ensure future profitability, according to the label's latest financial report via FashionUnited.
During the financial year 2023/24, the brand's total revenues dropped to just above €14 million EUR, a figure that the company stated does not meet the "financial ratios required for the agreement with the bank." Despite recording a slight increase in profit, the label said there was "uncertainty that could have a material impact on the company's ability to continue operating."
To save costs, the brand will close the doors to its downtown NYC store, which was the label's first retail outpost to open overseas. Located in the city's Lower East Side neighborhood, the two-floor shopping destination, which features ample statues, mosaics and murals alongside a club-like coffee bar and lounge, was designed in collaboration with Heather Faulding of 4plus Design.
Additionally, Daily Paper has restructured its team, which has had a "positive effect on costs," and it has allocated all of its e-commerce sales to its European distribution center, a move that looks to reduce further costs. Taking the aforementioned steps, the label believes it has a "healthy gross margin" and that its realignment should lead to increased profitability.
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