California Apparel News

San Francisco’s Gap Inc. released a filing with the United States Securities and Exchange Commission that revealed it will no longer see a split from Old Navy. With this announcement, the company also revealed that Neil Fiske, president and chief executive officer of the Gap brand division, would vacate his role. The news follows the November departure of former Gap Inc. President and Chief Executive Officer Art Peck.

“The plan to separate was rooted in our commitment to value creation from our portfolio of iconic brands,” Robert Fisher, Gap Inc. interim president and chief executive officer, said in a statement. “While the objectives of the separation remain relevant, our board of directors has concluded that the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation.”

With the changes to the company, the board of directors will search for an interim CEO while Fisher fulfills the responsibilities of the role.

In addition to Fisher temporarily leading the company, additional executive changes will take place. Banana Republic president and CEO Mark Breitbard will oversee Gap Inc.’s specialty brands. In addition to Banana Republic, these brands also include Gap, Athleta, Janie and Jack, Intermix and Hill City. Old Navy’s president and CEO, Sonia Syngal, will continue in her role. Executive Vice President and Chief Financial Officer Teri List-Stoll will be tasked with leading corporate operations in finance, supply chain, technology and real estate. Gap Inc.’s executive vice president of global general counsel, corporate secretary and chief compliance officer, Julie Gruber, will now manage corporate administrative functions including legal, corporate facilities and services, human resources and communications, loss prevention, sustainability, government affairs, and foundation.

“The work we’ve done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement,” Fisher said. “We have learned a lot and intend to operate Gap Inc. in a more rigorous and transformational manner that empowers our growth brands, Old Navy and Athleta, and appropriately focuses on the profitability of the Banana Republic and Gap brands. Our board is focused on supporting this work and appointing new leadership with the appropriate experience necessary to lead a portfolio of retail brands and to support our transformation efforts.”

Fourth-quarter and fiscal-2019 earnings for Gap Inc. will be released on Feb. 27.