Home / Knowledge / News / Apparel/Garments / Gap to compensate suppliers for cancelled orders

Gap to compensate suppliers for cancelled orders

14
Jul '20
Pic: GAP
Pic: GAP
Gap Inc. will work collaboratively with its vendors to compensate them in full for finished goods and goods in production that were cancelled or subject to pack and hold, according to the San Francisco-based company, which recently issued a statement saying it has also extended payment terms on certain orders and is providing low-cost financing to suppliers.

The owner of Old Navy and Banana Republic apparel chains said it is also working with banks to raise the amount of funds available within the programme.

Gap said last month it was sorting products it can sell now from those that it can store for later, identifying “planned orders that we will not place and -- where necessary -- those orders we need to cut.”

The company is trying to renegotiate rent payments with landlords, and is working to align its inventory with demand. Net sales fell by 43 per cent in the latest quarter amid widespread store closings.

Gap said the cancelled orders represent less than 3 per cent of the total ‘by value for finished garments and garments in production’. The company said it is trying to help suppliers liquidate products that weren’t purchased and is trying to find a use for uncut raw materials for future seasons.

In April, Gap Inc started actively working with vendors to manage its product pipeline and right-size its inventory. It also shifted capacity in some factories for making PPE—all with a goal to provide transparency and clarity to its supply chain partners as the company works through the issues due to the COVID-19 crisis.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Retail | On 10th Aug 2020

EU retail trade volume level returns to pre-COVID level

In June 2020, a month marked by some relaxation of COVID-19...

Pic: Shutterstock

Textiles | On 10th Aug 2020

Pak TPB to rationalise textile sector tariff structure

Pakistan's Tariff Policy Board has decided to rationalise the tariff...

Pic: Shutterstock

Retail | On 10th Aug 2020

Japan's World Co to shut 358 stores by March 2021

World Co, a clothing company headquartered in Kobe, Japan, will close ...

Interviews View All

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

C Kamatchisundaram, Voltas

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Rikesh Mistry,

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Rushiraj Mulani,

Rushiraj Mulani

The Shradhdha Group of companies was established in 2010 and is based out...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search