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Gap Inc. reported Tuesday it agreed to sell its Intermix designer outfits model to the non-public fairness firm Altamont Cash Partners, hoping to hone in on its four core models.
Altamont will obtain the entire Intermix small business, which includes its retail outlet leases and e-commerce operations. Intermix operates 31 U.S. stores. Economical phrases were not disclosed.
Gap acquired Intermix in 2012 for approximately $130 million in hard cash. The enterprise represented a very little much less than 1% of Gap’s 2020 sales of $13.8 billion, a Hole spokeswoman mentioned.
She additional that the offer isn’t really anticipated to have a substance influence on its margins.
In April, Hole marketed Janie and Jack, a large-finish children’s garments brand name it acquired from Gymboree, to Go World Retail.
By receiving rid of these two manner banners, the corporation will be equipped to concentrate a lot more on escalating its more robust-undertaking Athleta and Old Navy manufacturers, when functioning to change around its namesake Gap label as effectively as Banana Republic.
Gap shares were being down around 2% by Tuesday afternoon. The firm’s stock is up far more than 340% over the earlier 12 months. It has a sector cap of $13 billion.
BofA Securities was Gap’s financial advisor.