Arvind Lifestyle Brands, a wholly owned subsidiary of Arvind Fashions(AFL) and Gap Inc, have decided to mutually terminate their franchise business relationship in India.
Due to circumstances post the corona pandemic, both companies agreed that a mutual termination was in both Companies best interest.
As next steps, both companies will work out modalities regarding transition of the Gap business. Arvind Lifestyle Brands has appointed an Investment Bank to find a buyer for the Gap business.
The Gap business delivered revenues of Rs. 182 crore (4.7 per cent of AFL's consolidated turnover) with a PBT loss of Rs. 34 crore in FY2020.