Shoppers carry bags from a Gap store [Illustrative].
(photo credit: REUTERS)
American retail apparel franchise The Gap is expected to shut down operations in Israel in the coming year, Israeli media reported Thursday.
According to Channel 2, the Israeli company Gottex - the controlling shareholder of Gap along with Spanish brands Zara and Pull & Bear in Israel - announced that it will make efforts to absorb employees of the shuttering store chain.
The closing of the Gap in Israel comes as the brand has apparently "fallen" into the profit gap, facing depreciation in profits around the globe.
The brand's relatively high prices for the domestic market along with intense competition with other fashion brands in the country were noted as factors leading to the losses suffered by the Gap in Israel.
The Gap franchise arrived in Israel in late 2009 with the opening of branches in Tel Aviv and Jerusalem.
The chain currently operates seven stores around the country.
As of its 2016 first quarter report, Gap reported that it has nearly 4,000 company-operated stores in 52 countries.