OrotonGroup
(ASX:ORL) has announced it will discontinue the Gap franchise business in Australia, with store closures targeted for 31 January 2018.
The fashion retailer says it’s too early to quantify the financial impact of this but the decision will end the group’s future investment in the franchise, limiting related future losses.
OrotonGroup says following the strategic review it announced it May, it decided to ink a binding agreement to close its Gap franchise arrangements.
The firm says it’s also exploring options to maximize value for the company, which may include a sale, recapitalisation or refinance of its debt facilities.
Shares in OrotonGroup
(ASX:ORL) last traded at $13.10.
