Abercrombie Closing Last Hong Kong Store

Abercrombie & Fitch (New Albany, Ohio) announced that it will be closing its last store in Hong Kong next year, which is two years before its lease expires. The closure is expected to be “substantially complete” by the second quarter of 2017, reports Fortune. This flagship is the company’s last store in Hong Kong.

The early closure will cost the company approximately $16 million for breaking its lease. However, the company has determined it will take on the fines and close the store early due, in part, to falling retail sales in Hong Kong which have continued to drop for 16 consecutive months. The yuan has also experienced a decline in value.

However, the company plans to open five new stores in mainland China by the end of January.