Currently, Arvind Fashions, along with Gap Inc, is looking for a buyer for Gap franchisee in India.
Arvind Fashions and Gap Inc have made a decision to mutually terminate their franchise agreement in India. Both companies agreed to part ways due to circumstances post the COVID-19 pandemic.
Arvind Fashions told the Bombay Stock Exchange in a filing, “We wish to inform that Arvind Lifestyle Brands Limited, a wholly-owned subsidiary of Arvind Fashions Limited (AFL) and Gap Inc., have decided to mutually terminate their franchise business relationship in India.”
Currently, Arvind Fashions, along with Gap Inc, is looking for a buyer for Gap franchisee in India. Arvind Lifestyle Brands has hired an investment bank to find a buyer for the Gap business.
This decision comes six years after the Bengaluru-based company signed an agreement with the US fashion company for a master franchisee for the country.
“As the next steps, both companies will work out modalities regarding the transition of the Gap business. Arvind Lifestyle Brands Limited has appointed an Investment Bank to find a buyer for the Gap business,” the filing further stated.
In the fiscal year ending March 2020, Gap contributed about 4.7% of Arvind Fashions’ consolidated turnover with a loss of Rs 34 crores before taxes.