Gap to Split Into 2, Close 230 Stores - NBC4 Washington

Gap to Split Into 2, Close 230 Stores

The split up, which followed a comprehensive board review, come as Old Navy has been thriving, while Gap and Banana Republic have struggled

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    Gap to Split Into 2, Close 230 Stores
    AP
    FILE - In this Feb. 26, 2013, file photo, a shopper walks down the steps at a Gap store in Los Angeles.

    Gap Inc. is splitting into two. The retailer said 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 said the spin-off will enable each company to focus on flexibility and pare down costs.

    The company also said that it will be shuttering 230 Gap brand stores over the next two years.

    Gap's stock surged 24 percent in after-market trading.

    Clerk Pulls Out Machete on Would-Be Robber

    [NATL] Clerk Pulls Out Machete on Would-Be Robber

    A would-be robber armed with a knife had a surprise in store when an Alabama store clerk pulled out a machete in defense. The two's brief knife fight was caught on camera before the clerk runs out to damage the robber's car.

    According to police, suspect Seth Holcomb walked up to the counter to make a purchase. He leaves the store and then comes back in as if to make a second purchase. Then, he pulled out a knife at the counter. What he didn't expect was that the clerk would pull out a machete of his own.

    (Published Wednesday, March 20, 2019)

    The split up, which followed a comprehensive board review, come as Old Navy has been thriving, while Gap and Banana Republic have struggled.

    "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," said Robert Fisher, Gap Inc.'s chairman.

    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, which has about $8 billion in annual revenue. The new company that Peck will run has about $9 billion in annual revenue.

    Upon separation, Gap Inc. shareholders are expected to receive a pro-rata stock distribution and as a result own shares in both the new company and Old Navy in equal proportion. The deal is expected to close in 2020.

    The new company will be based in Gap Inc.'s current headquarters and Old Navy will remain at its current headquarters, both located in San Francisco.

    Gap's shares rose $6.21 to $31.61 in extended trading after the split-up was announced.

    YouTube Mom Accused of Abusing Foster Kids for Clicks

    [NATL] YouTube Mom Accused of Abusing Foster Kids for Clicks

    Machelle Hackney of Maricopa, Arizona, is accused of forcing her adopted children to participate in her YouTube channel and abusing them if they did not recall their lines or perform as directed. Hackney's channel had accrued hundreds of millions of views since she joined in 2012.

    (Published Wednesday, March 20, 2019)