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Gap stores in Australia to close in January 2018

OrotonGroup Ltd. on Aug. 4 said it has reached an agreement with U.S.-based apparel retailer Gap Inc. to discontinue its Gap franchise in Australia.

The Sydney-based retail group said the store closures are expected to be completed by Jan. 31, 2018. It added that it is too early to quantify the financial impact but that the move will end OrotonGroup's investment in the franchise, which will limit related losses in the future.

The company also said the closures are part of the strategic review it announced in May.

According to a report released the same day by The Sydney Morning Herald, Gap has four stores in New South Wales and two in Victoria and employs about 50 full-time and 150 casual staff members in total. Casual staff jobs typically are temporary, with irregular hours, and provide some, but not all, of the benefits permanent workers receive.