According to people with knowledge on the matter, the US clothing retailer is looking to sell its China business.
Gap, which owns Banana Republic and its namesake Gap brands, entered the China market in 2010. Alongside its bricks-and-mortar portfolio, Gap’s products are also available via Tmall, Alibaba Group Holding’s online shopping platform. Last year saw Gap pull out its Old Navy brand out of the market after scrapping plans to list the brand as a standalone public company.
Gap is working with Morgan Stanley in exploring their options and has already reached out to a number of prospective buyers to measure interest in the sale. Deliberations are still at an early stage and there is nothing yet set in stone to say that the company will sell its Chinese operations.
The news comes following a strategic review of Gap’s company-owned stores in the UK, France, Ireland and Italy.
As of yet, spokespeople from Gap and Morgan Stanley have not yet commented.
