U.S. apparel brand Gap will close its six remaining retail stores in Israel in 2017 due to major losses incurred by local franchisee Gottex Brands, as the label did not take flight there, Haaretz reported.
The Israeli publication cited an announcement from Gottex regarding the planned closures.
Gottex closed the Gap store at Be'er Sheva last year, and will progressively bring down the shutters at its remaining six stores in Israel over the next few months.
According to the report, Gap's operations in Israel were acquired by Gottex in 2012 from previous franchisee Elbit Imaging. After the takeover, the American label continued to face pricing competition from other retailers in the apparel market and failed to turn things around.
Sources quoted by the publication said the lack of action by the franchisee in terms of working out product management, pricing levels and marketing of the apparel label had contributed to its inability to make a splash in the Israeli retail market.