Gap Will Need to Paddle When Old Navy Sets Sail
A planned breakup puts added pressure on CEO Art Peck to return the namesake chain to relevance.
Bon Voyage.
Photographer: David Paul Morris/Bloomberg
For a long time, Gap Inc.’s struggling namesake stores and its Banana Republic chain have been riding the coattails of Old Navy, their healthier sister retailer. Now, the beleaguered brands have to figure out how to go it alone.
Gap announced Thursday that it will split into two public companies. One will consist only of Old Navy, and will be helmed by its current brand leader, Sonia Syngal. The other, which is yet to be named but is being temporarily dubbed NewCo, will consist of Gap’s other properties, including smaller stores such as Athleta and Intermix. The entity will be run by Gap’s current CEO Art Peck, who has led the parent company since 2015.