Gap weighing sale of China business: Bloomberg News
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FILE PHOTO: People pass by the GAP clothing retail store in Manhattan, New York, U.S., August 15, 2016. REUTERS/Eduardo Munoz
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(Reuters) - Apparel retailer Gap Inc is weighing options including a potential sale of its China business, Bloomberg reported on Monday, citing people with knowledge of the matter.
The report said https://www.bloomberg.com/news/articles/2021-03-08/gap-is-said-to-weigh-sale-of-china-business-as-sales-lag-behind?sref=vEQJzSks the Old Navy parent was working with an adviser to explore its options and has contacted prospective suitors. It added there was a possibility that Gap could also keep the business.
The company, owner of Banana Republic and Athleta brands, said it does not comment on rumors when contacted by Reuters.
Gap entered the Chinese market about a decade ago, betting on rising incomes in the world's second largest economy to boost its sales. However, it stopped selling Old Navy apparel in the country last year to sharpen its focus on North America.
Gap's Asian market accounts for about 5% of its overall net sales, according to its latest regulatory filing. The company does not break out country-specific sales.
Shares of Gap, up 43% this year, rose about 1% in extended trading.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shinjini Ganguli)
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