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Post Info TOPIC: FYI - Gap shutting down Forth & Towne chain
ViViDogWear


Kate Spade

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FYI - Gap shutting down Forth & Towne chain
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I know some of you guys have this store nearby and shop there...

LOS ANGELES (Reuters) - Retailer Gap Inc. (NYSE:GPS - news), seeking to focus on problems at its two main apparel chains, said on Monday it would shut down its newest chain, Forth & Towne, a move that will affect about 550 employees.

The company expects pretax expenses of $40 million for the closure of the 19 Forth & Towne stores in 10 U.S. markets. The expenses will be recognized over the first and second quarters.

Forth & Towne, designed to appeal to women between the ages of 35 and 50, was launched in August 2005. The stores featured larger, centrally located dressing rooms and were stocked with accessories, including handbags and shoes, to help women put together full outfits and drive impulse purchases.

"We made the tough decision to close the brand and focus our efforts on stabilizing the existing businesses," Robert Fisher, Gap chairman and interim chief executive, said in a statement.

The company said a thorough analysis found that Forth & Towne was not demonstrating enough potential to deliver "an acceptable long-term return on investment."

Forth & Towne was expected to compete with department stores, including Federated Department Stores Inc.'s (NYSE:FD - news) Macy's chain, and chain stores like Talbots Inc. (NYSE:TLB - news) and AnnTaylor Stores Corp. (NYSE:ANN - news), which sell to career women.

FOCUS ON PRIMARY BRANDS

Although analysts had recognized the underserved market that Forth & Towne was aiming for, some on Wall Street had criticized former Gap CEO Paul Pressler -- who left the company in January -- for focusing on new growth opportunities before fixing persistent problems at the company's two largest chains, Gap and Old Navy. Gap also operates the more upscale Banana Republic chain.

Gap is struggling to turn around a sales slump more than two years old that has seen once-loyal customers flee to rivals. Critics have cited fashion missteps, uninspired merchandise and confusing brand messages as reasons for Gap's problems.

"We believe the closure of Forth & Towne is immaterial to the Gap business overall but it demonstrates that Gap management is focused on right sizing operations to improve profitability and product focus," wrote analyst Richard Jaffe in a research note.

In November, Gap launched an online shoe venture, Piperlime.com, designed to compete with popular online footwear retailers like Zappos.com.

Gap shares were down 12 cents at $19.69 in midday trade on the



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Aurora


Marc Jacobs

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RE: FYI - Gap shutting down Forth & Towne chain
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I just read about this and was super upset.  I really like this store and the clothes actually were cute and fashionable.  So much better than GAP.  Honestly they should keep forth and towne open and close the gap.

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sarah3


Nine West

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I have not bought anything from GAP since high school. And yet I go in it every time I am at the mall...what a waste of time.  Nothing in there fits me right, or else I look at something and think it is overpriced.  I never find anything on their measly 2 sales racks in the back of the store, either.  I think the thing that makes me the most upset is that I wear a size larger in there than I do anywhere else, and even that one is a little tight.  I refuse to wear 2 sizes larger!  You'd think they would figure out that women like feeling GOOD about themselves when they try on clothes.  Yeah, I know it's just a number and I should get over it...but still.


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Elle


Hermes

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IMO they would have done a ton better if they'd allowed online shopping for Fourth&Towne.  Who opens a freaking chain these days and doesn't have a website, too?!  How are they supposed to compete with anyone if you can't shop there online?

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boobaby


Kate Spade

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I actually liked forth and towne but it was kind of hard for me to get to one. I asked the sa one time why they didn't have online shopping. She said they didn't have the stock yet for it.

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atlgirl


Gucci

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I can't say I'll miss it.

I've been to the one near me several times, and have never bought anything. I even have a coupon for 15% off and still can't really find anything - except a belt, which I think is overpriced to begin with. *sigh*

Everything fits weird or even if it fits, seems to be soooo roomy (skirts are hugely billowing out from the waist, dresses that fit my waist are huge on the top (which never happens with my girls), pants fit weird. They seem to be pushing their press in "More" magazine, so maybe they're targeting an older, larger woman (I guess I fit the "older" demographic, at 39) but it's annoying to never find anything to fit right there.

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Mandy


Kate Spade

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I've never been, but I plan to check it out before they close.  Anyone know if they are having any good sales in light of the closing?

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