NEW YORK (AP) — Gap Inc. is splitting into two.
Gap said late 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 says the spin-off will enable each company to focus on flexibility and pare down costs.
The moves, which followed a comprehensive board review, come as Old Navy has been thriving, while Gap and Banana Republic have struggled.
Gap says each company now requires a different strategy to thrive.
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.
