The closure of several outlets of a popular store seems to be a sign of the times. Recent business and commercial news indicates that Gap will be shutting the doors on a number of its stores in the country, some of which are located in Ontario. The company owns 230 stores across North America, but has not indicated how many closures will take place in Canada. The company said the move is in keeping with guidelines for outlets that are not consistently meeting sales requirements.
The stores earmarked for closure will be phased out over the next two years according to Gap's corporate office. The decision is expected to help modernize the overall operation of the company and to further develop its online presence and growth in remaining outlets. In addition, the company announced plans to split its brand into two companies: Old Navy being one and Gap, Banana Republic, Athleta, Intermix and Hill City being the other.
Closing these stores is expected to result in about a $635 million loss in sales. However, it is also expected to generate about $90 million in pretax savings annually. The closures will account for nearly half of the brand's North American shops.
Business closures as well as start ups in Ontario are often difficult to navigate without the assistance of a lawyer experienced in business and commercial law. There are many legal aspects to starting and owning businesses and a lawyer can provide his or her client with a rundown of what those laws entail. Corporate law can be confusing and complex and a lawyer's understanding of how those laws can affect a client's business may save not only a lot of stress, but a lot of potential undue financial layout.