Gap dumps plans to spin off Old Navy as a separate entity
New York – Gap Inc. says it no longer intends to spin off Old Navy as a separate entity.
The company said Thursday that its board scuttled the move after determining it would be too costly and complex, especially given the retailer’s recent struggles.
The company announced in February 2019 that it planned to split into two publicly traded companies, one for its low-cost Old Navy brand and another for the Gap, Banana Republic and its lesser known brands like Athleta, Intermix and Hill City.
Like many mall-based clothing chains, San Francisco-based Gap Inc. is seeking ways to turn its business around.
Its stock was up about 7% in after-hours trading Thursday.