Gap (NYSE: GAP) has sold its business in Greater China to Baozun for $40 million. Baozun will operate Gap’s in-market site and stores under a franchise agreement.
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The transaction is expected to close in the first half of next year. Gap stated in its press release that its decision to sell off its Greater China business was a result of its strategic business review of Gap-operated businesses globally.
The company stated that this sale will “allow Gap to serve the market through a more asset-light, cost-effective model and to benefit from the local and technology expertise of Baozun.”
