Gap to shut one in four N American stores

New York

GAP announced on Monday that it planned to close one-fourth of its stores in North America over the next few years, potentially affecting thousands of jobs, as the brand struggles to turn around a business mired in a long sales slump.

The retailer said in a statement that it would shutter 175 of its 675 Gap stores in North America, of which about 140 will close in the current fiscal year that ends in January. The closings will leave the Gap label with about 500 speciality stores in the region, in addition to Gap's 300 outlet stores, which are not being closed.

The bulk of the stores to be closed are in the United States. Gap will also close a limited number of European locations, the company said,…