GAP RETAIL CHAIN ANNOUNCED POSSIBLE BANKRUPTCY

The day before, it became known that a major American clothing retailer GAP Inc., which owns such brands as Gap, Old Navy, Banana Republic, Athleta, Intermix and Hill City, might go bankrupt soon.

According to the official statement, if the situation with the pandemic and its economic consequences does not change over the next year, the company simply will not be able to withstand the impact and will declare bankruptcy.

GAP has already taken the steps to reduce the expenses by informing its partners about the suspension of the production of fabrics, as well as the new collections for the 2020 summer-fall season.

This measure also affected the transportation of new goods to the stores, as only the suppliers for online trading are working now.

All the entrepreneurs are in a situation of complete uncertainty now, since the pandemic period and the magnitude of the economic consequences after it can only be predicted. Seasonality creates additional difficulties for the fashion retail industry, as the goods are sold in accordance with the fashion trends and in strict adherence to the upcoming seasons.

According to experts, the problems will arise not only at GAP Inc. - the possible bankruptcy of the retailer may become just one of the defeat stories of the big businesses.

24.04.2020