Struggling Gap to close 175 stores, layoff 250

NEW YORK - Gap (GPS) is closing 175 of its namesake U.S. stores and eliminating 250 corporate jobs as the clothing retailer attempts to strengthen its struggling brand.

Gap, which owns Gap, Old Navy and Banana Republic, will close about 140 Gap U.S. stores in the fiscal year that ends Jan. 31 and the remainder afterward. The San Francisco company also is closing an undisclosed number of stores in Europe.

"Returning Gap brand to growth has been the top priority since my appointment four months ago," Art Peck, Gap's chief executive officer, said in a statement.

The stores have about $300 million in annual sales out of Gap's total of $16 billion. Store closures are based on factors like location and performance.

The closures don't include Gap Factory or Gap Outlet locations. And Gap doesn't expect big changes at Old Navy and Banana Republic.

Gap said the job cuts at its headquarters are intended to make it faster and more decisive.

The retailer's announcement on Monday came a day before it holds an investor meeting at its headquarters.