Gap Inc. Scraps Plan to Spin Off Old Navy

Seth Wenig/AP/REX/Shutterstock Gap Inc. no longer intends to separate Old Navy into a stand-alone public company.” The plan to separate was rooted in our commitment to value creation from our portfolio of iconic brands,” Robert Fisher, Gap Inc. interim president and chief executive officer, said Thursday. “While the objectives of the separation remain relevant, our board of directors has concluded that the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation.” News of the canceled spin-off sent Gap shares ahead more than 6 percent, or $1.14, to $19.75 in after-hours trading.”The work we’ve done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement,” continued Fisher. “We have learned a lot and intend to operate Gap Inc. in a more rigorous and transformational manner that empowers our growth brands, Old Navy and Athleta, and appropriately focuses on profitability for Banana Republic and Gap brand. Our board is focused on supporting this work and appointing new leadership with the appropriate experience necessary to lead a portfolio of retail brands and to support our transformation efforts.” The struggling Gap Inc. is seeking a new ceo to

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