Gap ‘may shut all UK stores’
Jobs threat as at least 70 sites face chop
HIGH street fashion giant Gap is considering shutting down more than 70 shops in the UK, bringing the threat of major job losses.
The US-based firm, which is famed for its preppy styles and children’s clothes, launched here in 1987.
It has struggled in recent years and has resorted to deep discounting.
The company has now launched a review of its European arm.
Mark Breitbard, global head of Gap brand, said yesterday: “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.”
The firm, which has 129 company-owned stores in Europe, is also considering shutting a distribution centre in Rugby, Warks.
Accounts show UK stores’ turnover fell from £ 250million to £215million in the year to February 2019, with losses more than doubling from £20.5million to £47.2million.
At the time it had 3,235 employees.
I’m amazed it has taken them this long to consider closures
RICHARD HYMAN RETAIL EXPERT
Gap is increasingly moving towards a franchise model, where other firms run stores on its behalf. It has already shut the entire Banana Republic chain in the UK.
Independent retail expert Richard Hyman said: “The preppy look used to be very novel but they haven’t moved on much. I am amazed it has it taken this long for them to consider closing stores.” It comes as high street
mogul Philip Day is expected to be given more time today to buy back fashion chain Peacocks.
Parent firm The Edinburgh Woollen Mill Group is on the brink of administration, with 21,000 jobs at risk. The High Court is expected to grant Mr Day an extension to delay the administration to allow him to acquire part of Peacocks, saving thousands of jobs.