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Britain fashion icon Sir Paul Smith revamped his company after annual profits plunged 50 percent into the lowest levels since its 40-year existence.

This Is Money reported that Smith said his fashion empire needs a "kick up the backside." He said been streamlining the brand's clothing ranges, shut down to stores, and made some managers redundant. The company's pre-tax income went down £9.7million this year ending June, a decrease from last year's £20.7million.

According to WhaTech, Paul Smith, along with other high-end brands, was recently offered in the Elitify Trunk Show on December 5 to 6 at the Gurgaon Headquarters of the fashion store. It offers Designer Clearance trunks for up to 70 percent discounts from prominent fashion brands including Ralph Lauren, Armani Jeans, Valentino, and more.

The Jonathan Saunders business is closing, following the designer's decision to step down as creative director of the brand for personal reasons.

Meanwhile, Paul Smith, along with influential British designer collaborators like Vivienne Westwood and Matthew Williamson is joined by Jonathan Sanders. The British designer recently closed his business for personal reasons, according to a report by WWD.

Meanwhile, Paul Smith's 50 percent drop in profit is attributed to a small independent clothing store in Italy and other European countries. As shoppers go for bigger department stores, most went into administration. This lead bigger profit margins since large department stores can negotiate better prices from Paul Smith, and the smaller stores have less bargaining capabilities.

The company removed 12 lines designed for independent store sales. Now it limited its offerings into two specific lines. These are the premium Paul Smith range and the PS by Paul Smith collection, which is more mainstream. This is expected to take on bigger competing brands.

Smith said they have to go backward to go forward. Directors considered the year as satisfactory considering all the reorganizations and transitions.