Gap weighing sale of China business: Bloomberg News

Apparel retailer working with an adviser to explore options and contacted prospective suitors

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.

Ticker Security Last Change Change %
GPS GAP 33.24 +0.43 +1.31%

The report said 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.

GAP CEO PREDICTS SPENDING SPREE POST-PANDEMIC

The company, owner of Banana Republic and Athleta brands, said it does not comment on rumors when contacted by 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. (Photo by Dimas Ardian / Getty Images)

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.

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

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.