Gap will abandon its plan to spin off Old Navy into a separate public company.
“The work we’ve done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement,” said Robert Fisher, the company’s interim CEO, in a statement.
In early November, Gap dismissed CEO Art Peck. His departure called into question the company’s spin-off strategy. Gap‘s board concluded that the cost and complexity of splitting into two companies—combined with “softer business performance”—would instead limit the retail operator’s ability to create shareholder value.
“We have learned a lot and intend to operate Gap Inc.
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