Gap pulls plug on Forth & Towne

Fashion label Forth & Towne is closing its doors after less than two years of business. Struggling parent company Gap Inc has decided to pull the plug on the women's wear label, choosing instead to focus on its flailing and overexposed Gap and Old Navy brands. The closure of Forth & Towne is said to cost the group $40 million before taxes, but will eventually clear the way for a large-scale restructuring of its retail business.

Gap Inc is dealing with increased competition from the likes of Abercrombie & Fitch and H&M and its Gap brand has lost its edge as a purveyor of timeless quality basics with great individuality. According to industry experts, the group's challenge is to cut back its number of oversized stores and work on its merchandise. It has chosen to forgo the challenge of building on its fledgling Forth & Towne business - a brand it established to target women over 35 - and to repair the damage suffered by its older brands. Gary Muto, Forth & Towne president, will most likely leave the company, reports WWD. The group said it would try to slot the 550 employees, whose jobs will be affected by the closure, into jobs at Gap, Banana Republic and Old Navy.