Arvind Lifestyle Brands Ltd and Gap Inc to terminate franchise business relationship in India

Arvind Lifestyle Brands Limited, a wholly owned subsidiary of Arvind Fashions Limited (AFL) and Gap Inc., have decided to mutually terminate their franchise business relationship in India. Due to circumstances post the corona pandemic, both Companies agreed that a mutual termination was in both Companies best interest.

As next steps, both Companies will work out modalities regarding transition of the Gap business. Arvind Lifestyle Brands Limited, has appointed an Investment Bank to find a buyer for the Gap business.

The Gap business delivered revenues of Rs. 182 Crores (4.7% of AFL's consolidated turnover) with a PBT loss of Rs. 34 Crores in FY2020.

Shares of ARVIND Fashions Ltd. was last trading in BSE at Rs. 125.55 as compared to the previous close of Rs. 124.65. The total number of shares traded during the day was 1283.

The stock hit an intraday high of Rs. 126.60 and intraday low of Rs. 125.05.

Source : Equity Bulls

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