Arvind Fashions Limited, India’s top easygoing and denim player, on Tuesday after the market hours, educated the bourses about the closure of operations of their GAP business.
Arvind Lifestyle Brands Limited, a completely possessed auxiliary of Arvind Fashions Limited (AFL) and GAP Inc. has chosen to end its established business relationship in India commonly.
Mulling over the conditions post the Coronavirus pandemic, both the organizations arrived at this resolution, for example for the shared end, which has been taken in the organizations’ wellbeing. Following this, both the organizations will work out on the modalities concerning the change of GAP business. Arvind Lifestyle Brands Limited has named an investment bank to discover a purchaser for the GAP business.
The GAP business conveyed incomes of Rs 182 crore (4.7 per cent of AFL’s united turnover) with a PBT loss of Rs 34 crore in FY20.
Disturbances fundamentally influenced Q1FY21 deals and budgetary execution because of lockdowns brought about by the COVID-19 pandemic. In any case, roughly 80% of the stores have opened in the period of August. The organization figured out how to arrive at 46 per cent of sales on August 20, contrasted with the exact month a year ago.
The organization has reinforced its monetary record in Q2FY21 through the imbuement of Rs 660 crore of non-obligation assets through vital speculation by Flipkart in Flying Machine and the rights issue for Rs 400 crore.
Arvind Fashions is a large group of prestigious brands, both global and indigenous, similar to the other brands such as US Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, Flying Machine, and Sephora.
Not a good news for fashion industry.