The American fast-fashion retailer GAP lands itself in a dire situation!
The company reportedly has little cash left and has rent payments of its retail stores. After registering a regulatory filing with the SEC, the company reported that by holding the payment of rent for its retail stores, they will save around US $ 115 million from North America alone, which will provide temporary relief.
With brands like Banana Republic and Old Navy under its portfolio, the company has been struggling with financial problems. Lay-offs and furloughs have already been made and salary cuts for the senior management are predicted to go deeper.
The brand has also stopped paying dividends to its shareholders and will continue to do so for the rest of the year. As the pandemic continues to impact economies, GAP is among many retail brands that have been seeing the worst of the financial blows. The company closed revenues at around US $ 16 billion last year; however, the company barely crossed the billion mark this quarter.