Apparel retailer Gap is weighing options including a potential sale of its China business, reported Bloomberg.
Gap’s Old Navy parent is working with an adviser to explore its options and has contacted prospective suitors, said Bloomberg sources. The report added that there was a possibility that Gap could also keep the business.
Gap entered the Chinese market about a decade ago, betting on rising incomes in the world’s second largest economy to boost its sales. However, it stopped selling Old Navy apparel in the country last year to sharpen its focus on North America.
Gap’s Asian market accounts for about 5% of its overall net sales, according to its latest regulatory filing. The company does not break out country-specific sales.
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