// Gap in battle with landlords to close all its UK stores by July
// The US fashion retailer has 95 stores across the UK
// The move would result in hundreds of job losses
Gap is reportedly at war with its landlords after telling them it plans to hand back the keys to all its shops across the UK this July, which will result in the loss of hundreds of jobs.
The US fashion retailer, which has 95 stores across the UK, is currently mulling becoming an online-only business in Europe.
Gap first announced in October that it was considering shifting its operations to a franchise-only model in Europe.
READ MORE: Gap to close Oxford Street store
However, it is putting increased pressure on landlords as it tries to break lease contracts early, The Times reported.
In December, Gap announced it will close one of its two stores on Oxford Street in central London.
While Gap still operates a large flagship further down the famous shopping street opposite Bond Street underground station, the closure reflects the difficulties many apparel retailers face as the Covid-19 pandemic affects bricks-and-mortar.
For the to February 1, 2020, Gap’s UK retail sales fell by 9.5 per cent to £195.1 million that year, while it produced operating losses of £40.7 million.
Gap had also offered landlords to pay reduced rent until July.
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2 Comments. Leave new
They are still liable to pay rent on their stores unless they go into administration.
Just a bullying Tactics to try and get out of their contracts but to have liability they would have to be legal proceedings how would the landlords hold up against that?