Gap to Split Into 2, Close 230 Stores - NBC 6 South Florida
National & International News
The day’s top national and international news

Gap to Split Into 2, Close 230 Stores

The split up, which followed a comprehensive board review, come as Old Navy has been thriving, while Gap and Banana Republic have struggled

    processing...

    NEWSLETTERS

    Living Well With Cardiovascular Disease
    AP
    FILE - In this Feb. 26, 2013, file photo, a shopper walks down the steps at a Gap store in Los Angeles.

    Gap Inc. is splitting into two. The retailer said Thursday that it's creating two independent publicly traded companies — low-priced Old Navy and a yet-to-be named company, which will consist of the iconic Gap brand, Athleta, Banana Republic, Intermix and Hill City.

    The San Francisco-based company said the spin-off will enable each company to focus on flexibility and pare down costs.

    The company also said that it will be shuttering 230 Gap brand stores over the next two years.

    Gap's stock surged 24 percent in after-market trading.

    'You Never Get Over It': 20 Years After Columbine

    [NATL] 'You Never Get Over It': A Look Back 20 Years After Columbine

    Family, friends, teachers and survivors look back twenty years after Columbine, in an anniversary made tougher by a threat from a South Florida high schooler. 

    (Published Friday, April 19, 2019)

    The split up, which followed a comprehensive board review, come as Old Navy has been thriving, while Gap and Banana Republic have struggled.

    "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," said Robert Fisher, Gap Inc.'s chairman.

    Gap's current CEO, Art Peck, will hold the same position at the new company after the separation. Sonia Syngal, current CEO of Old Navy, will continue to lead the brand as a stand-alone company, which has about $8 billion in annual revenue. The new company that Peck will run has about $9 billion in annual revenue.

    Upon separation, Gap Inc. shareholders are expected to receive a pro-rata stock distribution and as a result own shares in both the new company and Old Navy in equal proportion. The deal is expected to close in 2020.

    The new company will be based in Gap Inc.'s current headquarters and Old Navy will remain at its current headquarters, both located in San Francisco.

    Gap's shares rose $6.21 to $31.61 in extended trading after the split-up was announced.

    Mueller Report: 10 Instances of Possible Obstruction of Justice by Trump

    [NATL] Mueller Report: 10 Instances of Possible Obstruction of Justice by Trump

    Special counsel Robert Mueller's report on Russian interference in the 2016 presidential election included instances of potential obstruction by President Donald Trump. Here is a rundown of the ten mentioned in the report.

    (Published Thursday, April 18, 2019)