Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, January 24, 2020

Article Excerpt

GAP INC., $17.66, symbol GPS on New York, is a multi-brand apparel retailer based in San Francisco. It owns Old Navy, The Gap, Banana Republic, Athleta, Intermix and Hill City. In May 2019, the company told investors that it would spin off its Old Navy brand. Its remaining brands would stay with Gap. Old Navy’s top executive is Sonia Synga, who was to serve as CEO for the new spinoff. Current Gap Inc. CEO Art Peck would remain in charge of the brands left in place. The spinoff was expected to take place sometime in early 2020. However, Gap has now confirmed for investors that it is no longer pursuing the separation of Old Navy from the rest of the company. It feels the move would be too complicated and costly to add value for shareholders. As well, it wants to wait until it can turn around sales at both units. In November 2019, Gap fired CEO Art Peck after four years in the…

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