Old Navy & The Gap Are Breaking Up

March 1, 2019

It's over for fashion odd couple The Gap and Old Navy. On Thursday, Gap Inc. announced it's spinning off Old Navy into its a separate, publicly traded company as the lower-priced brand continues to trend in a different direction from the rest of the company. While Old Navy will still go by Old Navy, the rest of Gap Inc.--which includes Banana Republic, Intermix, Athleta, Hill City, and the Gap brand--will stay under the same umbrella with a yet-to-be-announced new company name. The company also announced plans to shutter 230 Gap stores over the next two years as customers continue to flock to lower-priced brands like T.J. Maxx and, yes, Old Navy. "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,” Robert Fisher, chair of Gap Inc., said in a statement. “Recognizing that, we determined that pursuing a separation is the most compelling path forward for our brands."