Gap Is Permanently Shutting Down Its Flagship Store in San Francisco
Gap is permanently closing its flagship store in its hometown of San Francisco.
The apparel and accessories retailer confirmed that it is set to shutter its location at 890 Market Street, as well as its outpost at Three Embarcadero Center. Additionally, it dimmed the lights at its units on Chestnut Street and the Stonestown Galleria last month.
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“As part of Gap Inc.’s strategy to adapt to the changing needs of the customer and growth of our online business, we are looking thoughtfully at our real estate to support the best path forward,” a company spokesperson wrote in an email to FN. “As a result, we are closing a number of stores across the Gap Inc. fleet.”
The spokesperson added, “We are committed to quickly and decisively addressing stores that are underperforming and reviewing lease agreements don’t fit our vision for the future of Gap Inc. We are confident these closures will strengthen the health of our company moving forward. And, as with any store closure, we are encouraging employees to find opportunities at other locations within our family of brands.”
In the email, the chain said that its Old Navy flagship on Market Street, Gap outpost on Chestnut Street, Intermix on Fillmore Street, as well as multiple Banana Republic and Athleta locations in San Francisco will remain open.
Gap has been embroiled in legal disputes with some of its landlords over the past few months amid the coronavirus pandemic: In late April, the retail group announced that it would skip out on rent payments for its North American units. It noted at the time that it was negotiating with its property owners to defer or abate rent as its units remained closed, adding that it could terminate some leases as well as shut down some outposts for good.
Also in April, the company cautioned that it might not have enough cash to fund its business through the end of 2020. In a filing with the Securities and Exchange Commission, it wrote that it would have to seek additional sources of liquidity, including a combination of new debt financing or other short-term credit facility, in order to continue operations.
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