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By
Reuters
Published
Nov 3, 2021
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Italy's OVS to run all 11 Gap Inc stores in Italy

By
Reuters
Published
Nov 3, 2021

Gap Inc and OVS said on Wednesday they had agreed the Italian clothing retailer will acquire and run as a franchise the 11 stores the U.S. apparel group owns in Italy.


Photo: Shutterstock



The deal is expected to close in February, the two companies said, without giving financial details.

Last year Gap Inc. announced a strategic review of its European business to boost cost-effective ways of maintaining its presence in Europe.

“The transfer of all the 11 Gap stores in Italy to OVS will allow Gap to operate its business through a more capital efficient partner model and to benefit from the expertise of OVS,” the companies said in a statement.

In 2020 OVS started to sell Gap’s clothes in some of its stores and online, through a franchise agreement.

“The decision to transfer our Gap business is an example of how we are partnering to amplify and grow our brand in international markets,” Mark Breitbard, President and CEO of Gap Global, said in the statement.

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