Gap ‘mulling’ sale of China business
Clothing firm Gap is reportedly mulling the sale of its Chinese business as one of a number of options for overhauling its operations in the world’s second largest economy.
Sources told Bloomberg that the retailer was working with an adviser over and had made overtures to several potential suitors over the sale.
Having entered the Chinese market a decade ago, Gap last year ended sales of its Old Navy brand in the country after scrapping plans to spin off the subsidiary.
Despite hopes that the rapidly growing economy would help boost its sales, Asia now makes up only five per cent of its sales.
A sale, however, is not a done deal. The firm could well keep hold of the division, Bloomberg said.
Last week Gap said that it was starting a review of its options for its business in Europe, including possible closure of stores in the UK, France, Ireland and Italy in the second quarter.
City PM has contacted Gap for comment.