As many retailers in the apparel retail struggle, Gap has been constantly formulating strategies to rise above difficult times.
The fashion label had initially planned to spin off Old Navy, but now seems to have shelved it while it is still on the lookout for a new CEO.
Notably, Gap Inc. also runs Banana Republic and Athleta which it was previously planning to set up under ‘Newco’ along with Gap and Old Navy.
Interim Chief Executive Robert Fisher said, in a statement, “Our board of directors has concluded that the cost and complexity of splitting into 2 companies, combined with softer business performance, limited our ability to create appropriate value from separation.”
The plan was announced in February last year, and the company has continued to struggle since then leading to the November exit of Art Peck as CEO.
Fisher also said “The company’s work on the Old Navy spin off ‘shone a bright light on operational inefficiencies and areas for improvement. Management is committed to a more rigorous and transformational manner that empowers our growth brands.”