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Gap to Close Australian Stores

Gap will shutter all six of its doors in Australia by the end of January 2018.

OrotonGroup, which owns the Gap franchise in Australia, named weak retail demand as a reason for ending its relationship with Gap in the country, after conducting an ongoing strategic review of its business.

“The Board and I thank the entire Gap Australia and Gap Inc. team for their dedication and substantial efforts to develop the Gap business in Australia over recent years,” said OrotonGroup CEO Ross Lane. “OrotonGroup also acknowledges the support and cooperation that it has received from Gap Inc. in amending existing arrangements.”

Gap entered the Australian market in 2010 through a franchise agreement with Brand Republic Pty. Ltd.

The group continues to work through the closure details with Gap, and says it is too early to relay the financial impact, but admits that the decision will terminate the Group’s future investment in the franchise, limiting related future losses.