Gap says may not have enough money to run operations, Retail News, ET Retail

Gap says may not have enough money to run operationsHole Inc warned on Thursday it may perhaps not have enough cash to operate its operations in the future 12 months as it weathers the impression of the coronavirus pandemic, and stated it would need to reduce costs and raise revenue by issuing debt.

The apparel retailer, which like quite a few other folks in the business has closed its stores and furloughed staff members, stated it had also suspended lease payments of about $115 million for each month in North The united states.

The enterprise stated it was in talks with landlords to defer payments, modify lease agreements or in some scenarios terminate the leases and forever close some of the stores.

Hole stated it expects to have $750-$850 million of dollars and dollars equivalents inclusive of short-time period investments at the stop of the fiscal quarter ending May well 2.

In purchase to have ample liquidity for the future 12 months, the enterprise stated it would need to faucet the debt marketplace, reduce careers, defer cash expenditures and reduce again on orders from vendors.

Shares of the enterprise have been down approximately three% in early trading.

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