Gap Inc., the American fashion conglomerate, has made the decision to sell its womenswear brand, Intermix, to private equity firm Altamont Capital Partners. This move is part of Gap’s ongoing efforts to streamline its portfolio and focus on its top-performing brands. However, no financial details of the transaction have been disclosed.

Under the agreement, Altamont will acquire the entire Intermix business, which includes the brand’s 31 stores in the United States, its e-commerce platform, and other assets. This follows Gap’s recent sale of its kidswear brand, Janie and Jack, to Go Global Retail.

The sale of Intermix and Janie and Jack aligns with Gap’s “Plan 2023” strategy, which aims to slim down its operations and prioritize its core lifestyle brands, including Gap, Old Navy, Banana Republic, and Athleta. This strategic focus will allow Gap to drive long-term, profitable growth while providing unique products and experiences for its customers.

Sally Gilligan, Gap’s head of strategy, emphasized the company’s commitment to its core brands and stated that the sale of Janie and Jack and the planned transaction of Intermix demonstrate Gap’s dedication to allocating its resources to brands with high growth potential.

Intermix was originally acquired by Gap in 2012 for approximately $30 million. Despite being a well-known brand, it contributed less than 1% to Gap’s total annual sales of $13.8 billion in 2020. BofA Securities, Inc. advised Gap on the transaction with Altamont, but the financial terms remain undisclosed.

Gap’s decision to streamline its portfolio reflects its desire to optimize operations and concentrate efforts on brands that have the potential for higher growth. By divesting non-core brands like Intermix and Janie and Jack, Gap can focus on further developing its main lifestyle labels, ensuring a more efficient and profitable future.

Useful links:
1. Gap Inc. Official Website
2. Altamont Capital Partners Official Website