Gap is splitting into two independent listed companies, low-priced Old Navy and a yet-to-be named company comprised 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 move, which follow 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 chief executive Art Peck will hold the same position at the unnamed company post-separation.
Sonia Syngal, current CEO of Old Navy, will continue to lead the brand as a stand-alone company.
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