Arvind Lifestyle Brands and Gap to terminate partnership in India
The Gap business contributed revenue of Rs 182 crore ($24.7 million) to Arvind Fashions Ltd consolidated turnover, with a loss of Rs 34 crore for the financial year 2019-20.
For the fiscal year 2019-20, Arvind Fashions had reported a net loss of Rs 399 crore, as against a net profit of Rs 21 crore in the previous fiscal, while its revenue declined 17 percent to Rs 3,866 crore as compared with Rs 4,644 crore in 2018-19.
The decision for a mutual termination was taken due to the circumstances post the corona pandemic which has resulted in huge losses due to the restrictions imposed to curb the spread of the virus.
Arvind Lifestyle Brands Limited has appointed an investment bank to find a buyer for the Gap business in India, and currently both companies are working out modalities regarding the transition of the business.
AFL has a strong portfolio of fashion brands, both international and indigenous, which includes U.S. Polo Assn., Arrow, Gap, Tommy Hilfiger, Calvin Klein, and Sephora. It currently has a network of 1,290 stores across India.
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