Gap to close all 81 UK and Ireland stores and move online-only to ‘meet shoppers where they are’

Fashion retailer, Gap is exiting the UK high street, with plans to close all 81 stores in the UK and Ireland, the American company has confirmed this week.

The decision has been struck following a review of the fashion brand’s operations across Europe and will see the company shift to online only in the markets affected. As a result, all 81 stores across the UK and Ireland will be shut ‘in a phased manner’ from the end of August through to the end of September this year.

The move is part of the firm’s strategy to ‘meet customers where they are shopping’, detailing its plans to become a ‘digital first business’ as it now begins the search for a partner to help it drive its business online.

“In the United Kingdom and Europe, we are going to maintain our Gap online business,” said the company in a statement issue this week.

“However, due to market dynamics in the United Kingdom and the Republic of Ireland, we shared with our team today that we are proposing to close all company-operated Gap Specialty and Gap Outlet stores in the United Kingdom and Republic of Ireland in a phased manner from the end of August through the end of September 2021.

“We are thoughtfully moving through the consultation process with our European team, and we will provide support and transition assistance for our colleagues as we look to wind down stores.”

The news is seen as another blow to the UK high street which has suffered a number of losses over the last 18 months, including brands Debenhams which closed its last remaining stores on May 15th this year and was bought by Boohoo for £55m in January to operate as an online-only, and Arcadia, the group behind Topshop, Burton, and Dorothy Perkins which closed 31 stores this year after falling into administration in November 2020.

Several of its brands were bought by online retailer ASOS, including Topshop and Topman.

US retail giant Authentic Brands makes plans for Debenhams and Arcadia Group takeover

The US retail giant, Authentic Brands, has divulged plans for a double takeover of the collapsed department store chain Debenhams and Topshop-owner Arcadia Group.

According to a report from The Sunday Telegraph, Authentic Brands, the owner of the New York department store brand, Barneys, has been in talks with the administrators and was lining up bids for both companies.

The Sunday Telegraph reported that the firm, which was founded by Canadian Jamie Salter in 2010, was lining up bids for both brands.

Authentic Brands comes with the backing of heavyweight financiers such as Blackrock and Leonard Green & Partners. Prior to the pandemic, it was on course to book turnover of $15bn. Throughout the crisis, founder Jamie Salter has seized the opportunity offered to buy up a number of struggling brands, including Forever 21 and Brooks Brothers.

Both Debenhams and Arcadia Group are to offer comment on the latest update.

Last week, Mike Ashley’s Frasers Group said it was in negotiations to buy Debenhams from administrators in a rescue deal. It was also interested in participating in the sale of Philip Green’s collapsed Arcadia Group.

Frasers, formerly Sports Direct, said that it hoped a deal could be agreed and jobs at Debenhams saved after the Covid-19 pandemic sunk its business, but cautioned that the transaction was complicated and talks needed to take place quickly.

Administrators for Debenhams said earlier in December it would be wound-down, closing all its shops after 242 years in business and putting 12,000 jobs at risk. Green’s Arcadia fashion group collapsed into administration late in November putting more than 13,000 jobs at risk.

Mike Ashley’s Frasers Group in ‘potential rescue talks’ with Debenhams

Retail tycoon Mike Ashley’s Frasers Group is in talks over a ‘potential rescue transaction’ for the British department store Debenhams. The brand fell into administration last week, putting some 12,000 jobs at risk.

Frasers has said that it was ‘in negotiations with the administrators of Debenhams’ UK business’ on a possible deal, but it has warned that time is short for the retail brand.

In a stock market statement, it said: “Whilst Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia group, Debenhams’ biggest concession holder.

“There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.”

Details of the talks were first disclosed over the weekend by The Sunday Times.

Finance director Chris Wootton reportedly said that under the deal, Frasers would “hope to be able to save as many jobs as possible.”

Debenhams announced that it was to wind down its business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain. Talks ended between the two companies following the collapse of Arcadia Group.

The sports chain was the only remaining bidder for the company, but with the news of the collapse of Arcadia Group last week – the biggest concession stand operator across Debenhams stores – so too came the decision of JD Sports to terminate its talks of a takeover.

Debenhams slid into insolvency in April this year and has been on the search for a buyer since the summer. Without a buyer, the business faces going into liquidation or being wound down. This spring saw Debenhams axe 6,500 jobs. Its current predicament puts a further 12,000 at risk.

Debenhams to close all 124 stores as JD Sports rescue talks are terminated

Debenhams is to wind down the business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain. Rescue talks ended between the two companies following the collapse of Arcadia Group yesterday afternoon. The latest developments now puts 12,000 high street retail jobs at risk.

The sports chain was the only remaining bidder for the company, but with the news of the collapse of Arcadia Group yesterday – the biggest concession stand operator across Debenhams stores – so too has come the decision of JD Sports to terminate its talks of a takeover.

In a brief statement to the London Stock Exchange, the company said: “JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”

Debenhams slid into insolvency in April this year and has been on the search for a buyer since the summer. Without a buyer, the business faces going into liquidation or being wound down. This spring saw Debenhams axe 6,500 jobs. This morning’s news now puts a further 12,000 at risk.

Geoff Rowley of FRP Advisory, the joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.”

Debenhams’s former chairman Sir Ian Cheshire said that the business had been caught out with too many high street outlets on long rental leases.

“You’ve got to be so much faster and so much more online,” he said.

It comes as some 13,000 staff of Sir Philip Green’s Arcadia Group face an anxious wait following the business collapsing into administration. The high street giant, which includes the Topshop, Dorothy Perkins and Burton brands, has hired Deloitte to handle the next steps after the pandemic “severely impacted” sales across its brands.

Ian Grabiner, chief executive of Arcadia, said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders … in the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe.”