Gap could close all its UK stores
The US chain is considering shutting all its shops in Europe
Last updated 23rd Oct 2020
High Street clothing store Gap is considering closing its UK stores and moving to a franchise system.
The move could put thousands of jobs at risk, as the retailer looks at changing all of the stores it owns across Europe from next Summer.
The move could also mean the closure of the company's distribution centre in Rugby.
Gap has been impacted by the coronavirus pandemic, they reported a ÂŁ740m loss in the three months to May.
In a statement they announced a strategic review of their business in Europe, including the option to close company-owned stores.
Here's the statement from Mark Breitbard, Head of Gap Brand Global:
Today, we shared with our team that we are starting a strategic review of options for our Gap business in Europe. One of the options being explored is the possible closure of our company-operated Gap stores in the United Kingdom, France, Ireland and Italy at the end of the second quarter in 2021. In addition, we are reviewing our warehouse and distribution model and our Gap and Banana Republic company-owned e-commerce operations in Europe. A possible outcome is the closure of our EU distribution centre in Rugby.
As we conduct the review, we will look at transferring elements of the business to interested third parties as part of a proposed partnership model expansion. Franchise partnerships are a strong and cost-effective way to amplify the brand. Through franchise, Gap brand reaches customers in 35 countries with more than 400 stores and 14 e-commerce sites.