Gap Inc. has reported a further increase in losses for the year to January 30 2016, as sales plummeted across Gap and Banana Republic.
Pre-tax losses across the group shot up from £12.3 million to nearly £20 million in the financial year, as the retailer reels from its subsidiary Banana Republic’s demise.
The struggling fashion brand posted a five per cent drop in sales, dwarfed by Banana Republic’s 20 per cent decline.
The group’s overall turnover fell from £324.5 million to £306.7 million.
Last month the group announced it would close all the UK Banana Republic stores by the end of the year, but will continue to trade online.
Gap also closed 20 underperforming stores over the year.
Following numerous loss making quarters, the group has announced a restructuring plan to try and cap its financial woes.
This will see US stores be cut back, implementing redundancies and winding down its Old Navy subsidiary in Japan.