American fashion retailer has decided to sell its business Gap Greater China.
American fashion retailer Gap has decided to sell its business Gap Greater China. The buyer will be the retailer's longtime partner, e-commerce solutions provider Baozun. The company's other clients in the Celestial Empire include Calvin Klein, Zara, Guess and Nike.
According to the latest data, the amount of the deal will be $40 million, or about $50 million, subject to pending adjustments. The deal will close after regulatory approval in the first half of 2023.
"Baozun will enable the Gap brand to better connect with Chinese consumers across all channels," said Mark Breitbard, president and CEO of Gap Brand.
The decision to sell the Gap Greater China business followed as part of the company's long-term strategy, which was launched in the fall of 2020. The retailer expects to move to a lighter, more transparent and efficient model.
The Baozun and Gap Greater China collaboration began in 2018. Through the partnership with the Chinese company, the retailer has achieved sales growth and strengthened its position in the online segment.
"We are deeply committed to our customers in Greater China and know that it is a market with enormous potential for our brand," Breitbard said in a statement.