The deal comes as Gap is mired by slumping sales at its flagship brands in recent years. According to the company’s second-quarter results, operating losses racked up to $49 million while net sales dropped 8 percent to $3.86 billion compared to the same time last year.
Gap entered the Chinese market in 2010. It has more than 200 doors in mainland China and 16 in Taiwan. Its sister brandLast March, the company faced an intense boycott from Chinese customers for the. This year, the company started shutting down stores after widespread COVID-19-related lockdowns hurt brick-and-mortar sales.
According to local media reports, by August, Gap had already shut down stores in more than 15 cities, including Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou.