The luxury brand Burberry has terminated an agreement with its French perfume licensee as it keeps its options open on how to manage the business in future.
Burberry will pay Paris-based InterParfums about €181m (£142m) to terminate the deal from December. But it is continuing discussions with the company about how to structure a new deal. It said the outcome of discussions is "uncertain". Termination of the agreement leaves Burberry open to pursue other options if a deal cannot be struck with InterParfums.
Burberry said it had taken the decision to end the contract "to maintain flexibility in pursuing its objective to develop fully this business in the future".
The British brand has been renegotiating a number of contracts and licensees in a wholesale shake-up of its global business in order to give Burberry more control of how its products are sold to customers.