Gap exiting land down under

Gap's local franchisee in Australia is ending its four-year relationship with the specialty retailer.



The financially struggling OrotonGroup is expected to close its six Gap stores by the end of January as it looks to focus on its core Oroton handbag business and limit related future losses. In June, Oroton, which operates 70 stores and is best known for its luxury handbags, announced it was exploring options, which could include a sale of its business.



"The Board and I thank the entire Gap Australia and Gap Inc team for their dedication and substantial efforts to develop the Gap business in Australia over recent years," said Oroton chief executive Ross Lane said. "Oroton Group also acknowledges the support and co-operation that it has received from Gap Inc in amending existing arrangements."



Oroton has experienced an 11% decrease in sales in the nine months to the end of April, compared to the same period a year ago.