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Gap Inc. has scrapped its plan to spin-off Old Navy into a stand-alone public company.

“The plan to separate was rooted in our commitment to value creation from our portfolio of iconic brands,” said Robert Fisher, Gap Inc. interim president and chief executive officer. “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.”

In addition, top management was reorganized. Mark Breitbard, president and ceo, Banana Republic, will now lead Gap Inc.’s collection of specialty brands including Gap, Banana Republic, Athleta, Janie and Jack, Intermix and Hill City.

Sonia Syngal, president and ceo, Old Navy, will continue to lead Old Navy. Teri List-Stoll, executive vice president and chief financial officer, will lead corporate operations related to finance, supply chain, technology and real estate, and Julie Gruber, executive vice president, global general counsel, corporate secretary and chief compliance officer, will lead corporate administrative functions including legal, corporate facilities and services, human resources and communications, loss prevention, sustainability, government affairs and foundation.

Neil Fiske, president and ceo of Gap brand, will leave the company.

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