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March 31, 2020

Covid-19: Gap expects to extend store closures to curb coronavirus 

Clothing, accessories and personal care retailer Gap is expecting its store closures deadline to extend into next month as efforts to reduce the spread of the coronavirus (Covid-19) continue.

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Clothing, accessories and personal care retailer Gap is expecting its store closures deadline to extend into next month as efforts to reduce the spread of the coronavirus (Covid-19) continue.

The company had originally planned to reopen its stores on 1 April.

As part of this move, a majority of Gap’s store associates in the US and Canada will be on leave.

Payment to affected associates will be stopped while applicable benefits will continue until the stores reopen.

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The company has also established an Employee Resource Centre to support its impacted employees where they can apply for temporary roles at other retailers that are still operating.

The leadership team and the board of directors will also take a temporary reduction in pay.

Gap CEO and president Syngal said: “We know that tens of thousands of people rely on us to support themselves and their families and that millions more around the world rely on our business.

“We are doing everything we can to provide support during this time, and we are intensely focused on welcoming back our store teams and customers as soon as we are able.”

Furthermore, the company has drawn $500m on its revolving credit facility, suspended the regular quarterly cash dividend, and reduced capital expenditures by around $300m.

The number of infected people from Covid-19 has reached 736,944 globally, while the death toll of the outbreak has exceeded 35,000.

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