With C. Wonder and Wet Seal each filing for bankruptcy in the last week, we haven't been able to get the song "Another One Bites the Dust" out of our heads. And apparently the track isn't ceasing its loop any time soon, because as of Friday afternoon, we have another company to add to the list.
Gap has announced that it's shutting down Piperlime by the end of the first quarter of fiscal 2015. According to a statement, Piperlime was by far the Gap Inc's smallest brand. Yearly revenue came in below $100 million — less than 1 percent of the $16 billion in revenue the company generated across its six brands. So, yes, we'd guess the cost of keeping it operational was probably not worth the returns.
It's one less thing for incoming CEO Art Peck to worry about when he takes up his new role on February 1. Although Athleta has been riding the athleticwear boom nicely and Old Navy saw its holiday sales pop up, the company's namesake brand is still struggling to find an aesthetic formula that will solve its slipping sales. In December, Gap's sales dropped 5 percent compared to 2013.
Piperlime will be closing down its e-commerce site, as well as its one New York store. If saving money is one of your New Year's resolutions, we'd suggest you keep an eye out for liquidation sales.