Abercrombie & Fitch to close all Gilly Hicks stores

American fashion retailer Abercrombie & Fitch has announced that it is closing all of its stores for its Australian-themed lingerie, beach and nightwear brand Gilly Hicks after declining revenues. The brand owner, which also owns

the chain Hollister, confirmed that it would be closing all of its standalone Gilly Hicks stores including the five in the UK, after conducting a “long-term strategic review” of the brand.

The company currently operates 28 standalone stores worldwide, including its UK stores on Regent Street, Westfield London and Stratford, St David’s in Cardiff and Bluewater, and it is aiming to complete the closures by the end of the first quarter of 2014.

Abercrombie & Fitch chief executive Mike Jeffries said: "In connection with our long-term strategic review, we have decided to focus the future development of the Gilly Hicks brand through Hollister stores and direct-to-consumer channels. This decision reflects the successful pilot of selling Gilly Hicks branded intimates in Hollister stores.

“As a result, we have made the determination to close our stand-alone Gilly Hicks stores. We believe it is critical to focus our efforts and resources where we have the greatest opportunities to drive profitable growth for our brands."

Abercrombie & Fitch to shut down Gilly Hicks

Even though the stores are set to close the brand isn’t, the company said it would "continue to offer Gilly Hicks branded intimate apparel through its Hollister stores and direct-to-consumer business".

The announcement comes after the company reported that total sales for the third quarter ended November 2 declined 12 percent, to 1.03 billion US dollars from 1.17 billion US dollars for the thirteen weeks ended October 27, 2012.

The closure and restructuring of Gilly Hicks will cost Abercrombie & Fitch between 90 and 100 million US dollars in pre-tax charges, including about 40 million US dollars in non-cash impairment costs and 50 million US dollars in charges related to lease terminations, severance and other charges.

Gilly Hicks is not the first brand of Abercrombie & Fitch that has been removed from the market. In 2004, the American fashion group launched chain Ruehl, and then closed it in 2009 after reaching nearly 30 stores.