Gap Inc's To Close 175 Gap Stores In An Effort To Boost Its Profitability

Due to the closure of these stores, the company expects to lose about $300 million in annual sales. It will also post one-time charges of $140 million-$160 million related to lease buy-outs, asset impairments, inventory write offs and severance pay for employees. Although Gap Inc will lose significant amount of money related to these store closures, it expects to gradually offset this loss with annualized savings estimated at $25 million.