Gap weighing sale of Chinese activity: Bloomberg News
(Reuters) – Clothing retailer Gap Inc is evaluating options, including a potential sale of its China business, Bloomberg reported on Monday, citing people with knowledge of the matter.
The report says https://www.bloomberg.com/news/articles/2021-03-08/gap-is-said-to-weigh-sale-of-china-business-as-sales-lag-behind?sref = vEQJzSks the Old Navy parent was working with a counselor to explore his options and contacted potential suitors. He added that it was possible that Gap would retain the business as well.
The company, owner of the Banana Republic and Athleta brands, said it did not comment on the rumors when contacted by Reuters.
Gap entered the Chinese market about ten years ago, betting on rising revenues for the world’s second-largest economy to boost sales. However, it stopped selling Old Navy clothing in the country last year to focus more on North America.
Gap’s Asian market accounts for around 5% of its overall net sales, according to its latest regulatory filing. The company does not break down sales by country.
Gap shares, up 43% this year, are up about 1% in extended trading.
(Reporting by Praveen Paramasivam in Bengaluru; editing by Shinjini Ganguli)