By Emma Koehn and Dominic Powell.
Fashion retailer OrotonGroup has revealed plans to close all Gap franchise stores by the end of January 2018, but says it is too early to tell what the financial impact on the business will be.
The troubled retailer informed shareholders this morning it has entered a binding agreement with the brand’s US parent company Gap Inc to discontinue the franchise agreement it established in 2013.
The company had signed a 10-year licence deal for the Gap brand, and established six stores in Sydney and Melbourne, but faced challenges growing the local business, which is said earlier this year had “further deteriorated in an aggressive apparel market”.
Oroton chief executive Ross Lane thanked the Australian and US Gap teams for their “substantial efforts” to develop the brand in Australia.
Read more: How a Gap in the market has proved a big challenge for Oroton
The government is set to introduce legislation to ensure only actively trading businesses will be eligible for the lowering of the company tax rate, reports Fairfax, as it looks to clear up confusion around how the cuts will take effect.
The corporate tax rate for businesses under $10 million has been reduced from 28.5% to 27.5% for the 2016-17 financial year, and for businesses turning over between $10 million and $25 million, the lower company tax rate will come into effect in the 2017-18 financial year.
Fairfax has been told the legislation would amend the bill to “remove any uncertainty” after confusion rose when the Australian Taxation Office interpreted the legislation to include companies holding passive investments.
“The policy decision made by the government to cut the tax rate for small companies was not meant to apply to passive investment companies,” financial services minister Kelly O’Dwyer said last month.
The humble margherita pizza has found itself in the middle of some opportunistic marketing from Australian pizza retailer Pizza Hut, following the news that Domino’s would be ditching the tomato-cheese-basil trifecta from its newly revamped menu in most states.
According to news.com.au, Pizza Hut will be handing out free margherita pizzas to the first 10 customers at each of its stores around the country from this Friday (today) to Sunday, equating to about 10,000 pizzas.
“To get your free pizza simply head to your local Pizza Hut and be one of the first 10 customers each day (Fri, Sat & Sun) to order your free margherita, but remember you must be in the store to pick it up! True story!” the company said on Facebook.
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