Gap, Old Navy to split into separate companies

Gap announced yesterday plans to split into two publicly trade companies in 2020.

Gap and Old Navy will become separate companies through the restructuring process.

“Following a comprehensive review by the Gap Inc. Board of Directors, 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 Gap Chairman Robert Fisher.

“Recognizing that, we determined that pursuing a separation is the most compelling path forward for our brands — creating two separate companies with distinct financial profiles, tailored operating priorities and unique capital allocation strategies, both well positioned to achieve their strategic goals and create significant value for our customers, employees and shareholders.”

Read more from Yahoo Finance.