Gap Europe expected to closeThursday, 07 August 2008
Gap Europe today is expected to announce it is closing or downsizing its European operations, which will see many of its staff without jobs. The company, which began to design European products out of its new London headquarters when American products were poorly received by the more fashionable European customer, will forge operations out of its New York offices, where European designers will also be based.
The move comes unexpectedly as Gap Europe was set up only two years ago, however in the wake of the global credit crunch and poor sales of Gap Inc's sister brands in the US, consolidating its structure may have been inevitable.
Gap Europe's first collection was received exceptionally well by press and customers alike, however it has taken time to re-invent the brand in Europe, which many felt was lacking in its clothing offer in comparison with UK and Spanish high street conglomerates.