Since Monday, the Grenoble Commercial Court has been examining the financial situation of the Gap chain of stores. According to information from Liberation, the company is preparing to file for bankruptcy. This bankruptcy comes as many French textile companies such as Camaïeu and Go Sport are also closing their doors.
The Gap brand is on the verge of collapse. According to information from Release, the Gap brand is in serious financial difficulty. Since Monday, the Grenoble Commercial Court has been examining the financial situation of the chain of stores. Twenty of the brand’s French boutiques are threatened with imminent closure and 360 employees risk losing their jobs.
Coping with post-Covid
Gap France drags a debt of 25 million euros for an annual turnover of around 40 million euros. According to Thomas Grafanino, sector expert for the consulting firm Sia Partners, these difficulties are not surprising: “We have the impression of this domino effect which is due to the Covid. During this period, all businesses were preserved thanks to state-guaranteed loans and partial unemployment. Gap France is now facing debts and all market transformations.
The destiny of the brand is directly linked to the Go Sport group, another property of Michel Ohayon, which absorbed Gap last January. Go Sport was placed in receivership in early February pending possible buyers. Gap should meet the same fate. The Commercial Court of Grenoble must decide in the coming days.