Gap, Inc. gaps out Forth & Towne line
Restructuring will cost $40 million
Screen shot courtesy Gap.com
By Brent Begin, Bay City News Service
February 26, 2007
SAN FRANCISCO (BCN) - San Francisco-based Gap Inc. announced
today they plan to shut down Forth & Towne, an apparel concept
geared toward women over 35 years old.
The company plans to close 19 stores throughout the U.S., which
would affect 550 employees. Interim president and CEO Bob Fisher
said despite initial successes, the clothing brand was not making
money fast enough to recoup its initial investment.
"Forth & Towne was a great test of a promising concept
and an illustration of the innovative risks you need to take in
our business," Fisher said in a statement. "We made
the tough decision to close the brand and focus our efforts on
stabilizing the existing businesses."
Store closures are expected to be completed by the end of 2007
and is estimated to cost around $40 million, according to the
company. Forth & Towne was first rolled out in August of 2005.
The company also announced it will attempt to place affected employees
in other brands, which include Old Navy, Gap and Banana Republic.
"I want to thank the talented Forth & Towne for their
hard work in bringing this brand to life," Forth & Towne
President Gary Muto said in a statement.
The closure of Forth & Towne is only one of several major
changes hitting Gap Inc. recently. Poor earnings prompted the
company to search for potential buyers earlier this year and less
than a month ago, Paul Pressler stepped down as CEO.
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