Gap shares slipped after the clothing retailer scrapped plans to spin off its Old Navy chain into a separate company. The company, which also operates its namesake and Banana Republic stores, said it would have been too costly and complex to cut Old Navy loose. Like many mall-based clothing chains, Gap is struggling to turn itself around as shoppers go online or switch to discounters like T.J. Maxx for their clothing.
It announced in February 2019 that it planned to split into two publicly traded companies, one for its low-cost Old Navy brand and another for its other brands. Gap also said Neil Fiske is leaving the company less than two years since he became head of the Gap brand. The company is still looking for a CEO to replace Art Peck, who left in November