GAP closing down in Israel
Beset by chronic financial misfortune, the fashion retail chain's franchisee announces that all 7 stores will be shut down by 2017; company has registered drop in sales in a number of countries.
The Gottex franchisee has announced that it plans to shut down the GAP clothes retail chain in Israel in 2017, amid chronic decreases in sales.
The fashion conglomerate has promised it will “make efforts to hire workers from its stores in Israel and to integrate them into alternative corporations in other brands.”
Gottex controls a number of high-end fashion retail store operations in Israel, including Zara, Pull&Bear, Bershka and Massimo Dutti. It also owns its own Gottex brand of swimwear.
GAP
The group, owned by Joe Shavel, purchased the right to GAP activities from Elbit Imaging in January 2012 for NIS 40 million. Then, the fashion chain—selling men’s, women’s and children’s and baby clothes—operated 5 stores in Israel, a figure that was brought up to 7 by 2016.
The financial situation for the retail store is not only on the decline in Israel however, with its operations suffering significant blows around the world.
It was recently published that GAP in the US has seen a consistent fall in its profit margins for the past few years and consequently announced that this year it would shut down 65 branches instead of the 50 originally planned.
GAP also possesses brands such as Banana Republic, Old Navy and others, all of which have registered plummeting sales. Banana Republic for example, announced the closure of it branches in Britain and Old Navy in Japan.
