SME Times News Bureau | 30 Sep, 2020
Arvind Lifestyle Brands Ltd, a wholly-owned subsidiary of Arvind
Fashions Ltd (AFL), and Gap Inc have decided to mutually terminate their
franchise business relationship in India.
"Due to circumstances
post the corona pandemic, both companies agreed that a mutual
termination was in both companies' best interest. As next steps, both
companies will work out modalities regarding transition of the Gap
business. Arvind Lifestyle Brands Limited has appointed an Investment
Bank to find a buyer for the Gap business," said a regulatory filing by
Arvind Fasions.
The Gap business delivered revenues of Rs 182
crore (4.7 per cent of AFL's consolidated turnover) with a PBT loss of
Rs 34 crore in FY2020.
The company has entered into a binding
agreement on September 29 with Gap Inc to terminate the franchise
business relationship in India.
The companies are working out
modalities regarding transition of the Gap business in India and the
closure period will become clear over time.
