Gap to close Forth & Towne stores
27/02/2007
Clothing and accessories retailer Gap Inc. is to close its Forth & Towne store concept stores after an 18-month pilot that began in August 2005.
While the company was encouraged by its initial performance, it has concluded that the concept was not demonstrating enough potential to deliver an acceptable long-term return on investment.
The company plans to close its 19 Forth & Towne stores by the end of June 2007 and anticipates pre-tax expenses associated with the closure will be approximately $40 million.
The closure will impact approximately 550 employees and the company is looking at ways to redeploy employees to positions across its other brands where feasible.
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