Gap's gloom deepens as boss defects

ONE of the top European executives at American clothing giant Gap has quit to join rival Ralph Lauren in a move that deals another blow to the struggling chain.

Steve Masters, vice-president of property, finance and IT, is leaving to head Ralph Lauren's retail operations. Masters has told colleagues that he will join Ralph Lauren in the middle of March.

As senior vice-president for Europe at Ralph Lauren, Masters' role will be to oversee all operations in the UK and the Continent. The news adds to Gap's recent woes.

Once the darling of the High Street with its simple, classic designs, the chain has seen sales and profits plummet over the past few years. Turnover in America fell by 11% in December - a slight improvement on a 25% drop in November - but still the 21st monthly fall in succession. International sales, which include 225 UK stores, fell 14%.

In the three months to February, Gap is expected to report a £36m loss, similar to the previous quarter. The company announced last June that it was cutting about 550 jobs in its San Francisco head office, while in the UK the company is accepting voluntary redundancies as part of its imminent head office relocation from London to Rugby, Warwickshire.

Masters dismissed market speculation that his departure was triggered partly by the recent slide in global profits at Gap. 'My decision was career-based,' he told the magazine Estates Gazette.

'I would have happily stayed there had I not been offered the most exciting opportunity of my career. It was an offer I couldn't refuse.' Sources close to Masters said he was lured to Ralph Lauren because the position carried more prestige and responsibility.

Masters' departure means Gap has had to scramble to restructure its European operations. UK property director Stephen Boyce, who has been with the retailer for three years, will take responsibility for store development, while Padraig Drennan will become senior director of finance and IT for Europe. Both will report to senior vice-president Anthony Thompson.