PARIS – Hermione People & Brands, the retail arm of the FIB group, acquires the activities of Gap Inc. in France and will operate stores under a franchise agreement, the groups jointly announced Tuesday.
Gap also received regulatory approval for the franchise agreement with HPB in the country on Tuesday.
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The agreement involves the transfer of the 21 Gap brand stores and the 347 Gap stores France employees at HPB in October. Financial terms of the transaction were not disclosed.
Gap announced the strategic review of its company-managed activities in Europe on October 20, 2020, when the group announced to its employees that it could close its network of stores in the region, while expressing interest in establishing partnerships to maintain its presence there.
“Today’s shared transaction is the result of Gap France’s review,” the companies said in a statement Tuesday. “This will allow Gap to operate through a more efficient partnership model and to benefit from the expertise of Hermione People & Brands, which owns a portfolio of major distribution brands Camaïeu, La Grand-Récré and 22 stores. affiliated with Galeries Lafayette.
Owned by French businessman Michel Ohayon, FIB Group, or Financière Immobilière Bordelaise, is a commercial real estate investment and development company that is also involved in high-end hotels and wine production.
In April, it was announced that HPB had entered into exclusive negotiations to acquire Gap’s business in France and operate the stores under a franchise agreement. Then, in June, the French Competition Authority gave the green light to Ohayon.
“Together, we will co-write a new page in the history of Gap in France and help the company meet the distribution challenges of today and tomorrow,” said Wilhelm Hubner, associate president of HPB , in the press release.
Mark Breitbard, Chairman and CEO of Gap Global, said: “Gap has served customers in France for almost 30 years, and we look forward to working with Hermione People & Brands as a franchise partner in France as they offer innovative retail experiences. . The decision to transfer our Gap business to a strong operator is an example of how we are teaming up to amplify and develop our brand in international markets. “
Gap opened its first shop-in-shop at Galeries Lafayette in France in 1993.
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