Gap: extends store closures, freezes employee pay

(CercleFinance.com) - US fashion retailer Gap said that it expects the closures of its North American and European stores will last beyond the previously announced date of 1 April due to the prolongation of existing measures to fight the coronavirus.


As part of this decision, the company will lay off the majority of its store staff in the United States and Canada, pausing pay but continuing to offer benefits until stores are able to reopen.

To support its employees, the retailer has set up a platform including resources to identify and apply for temporary roles at other retailers that remain open and which continue to hire staff.

The company has also decided to reduce headcount across its corporate functions worldwide, while its entire executive team, along with the board of directors, will take a temporary pay cut.

Gap closed all of its company-owned stores in North America and Europe two weeks ago.

The company said last week that it was drawing on the entire 500 million dollars of its revolving credit facility and reducing its capital expenditure by approximately 300 million dollars for the current fiscal year.

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