"Due to circumstances post the corona pandemic, both companies agreed that a mutual termination was in both companies' best interest. As next steps, both companies will work out modalities regarding transition of the Gap business. Arvind Lifestyle Brands Limited has appointed an Investment Bank to find a buyer for the Gap business," said a regulatory filing by Arvind Fasions.

The Gap business delivered revenues of Rs 182 crore (4.7 per cent of AFL's consolidated turnover) with a PBT loss of Rs 34 crore in FY2020.

The company has entered into a binding agreement on September 29 with Gap Inc to terminate the franchise business relationship in India.

The companies are working out modalities regarding transition of the Gap business in India and the closure period will become clear over time.