The latest big breakup isn’t between two superstar celebs. Instead, it’s The Gap and Old Navy that are parting ways.
The Gap recently announced the split, detailing what will happen to the two brands. Old Navy, which has seen stellar success in the past few years, will stand alone. The Gap, Athleta, Banana Republic, Intermix and Hill City will now all fall under the umbrella of a still yet-to-be-named new parent company.
photo: Mike Mozart via Flickr/Composite: Keiko Zoll
So why are the brands splitting? Gap Inc.’s Board Chairman, Robert Fisher, said, in a press statement, “Following a comprehensive review by the Gap Inc. Board of Directors, it’s clear that Old Navy’s business model and customers have increasingly diverged from our specialty brands over time, and each company now requires a different strategy to thrive moving forward.”
Fisher also added, “Recognizing that, we determined that pursuing a separation is the most compelling path forward for our brands—creating two separate companies with distinct financial profiles, tailored operating priorities and unique capital allocation strategies, both well positioned to achieve their strategic goals and create significant value for our customers, employees and shareholders.”
What does the split mean for you? If you’re an Old Navy customer, look for more good things to come. But if you’re a fan of The Gap, you may need to find a new mall fave to shop. According to recent reports, Gap Inc. plans on closing 230 specialty stores over the next few years—with the majority being in the United States.
As of now, Gap Inc. hasn’t announced specific store closures or given any word on the fate of Gap Kids. The Gap (now and post-Old Navy split) will still have an e-commerce presence, making it possible for you to buy from the brand online.