For the first time in years, Gap Inc.'s annual shareholder's meeting wasn't disrupted by rabble-rousing demonstrators protesting the company's alleged use of sweatshop labor or the logging of redwood forests by its founding family, the Fishers. The Gap is suddenly facing a brain drain, losing several key executives. And in early April, the company announced a sharp slowdown in sales growth. And it's not just the flagship Gap chain that's suffering. Sales at the once-booming Old Navy stores are also starting to drag.
Gap says it combats sweatshops.
A San Francisco human rights group has launched a guerrilla campaign against Gap Inc., buying ads and distributing posters meant to embarrass the clothing giant into raising pay for its global work force. Selling hip khakis is harder when someone's saying they're stained with sweat. A letter sent to Gap customers explaining their Code of Vendor Conduct. Some 300 rallied to denounce the Gap at its Powell and Market flagship store. Protesters across the country demonstrated Saturday outside stores they say sell clothing made in sweatshop conditions.