Gap Inc. is selling a children’s wear brand it acquired about two years ago to an investment platform.
The apparel retailer has entered into an agreement to sell Janie and Jack, which operates more than 115 stores in the U.S., to Go Global Retail. The transaction includes Janie and Jack’s e-commerce platform as well as all store leases and assets. Financial terms of the deal, expected to close April 2, 2021, were not disclosed.
“As part of Gap Inc.’s Power Plan 2023, and exemplified by this transaction, we are prioritizing strategic focus and resources behind the growth and potential of our billion-dollar brands in Old Navy, Gap, Banana Republic and Athleta,” said Sally Gilligan, head of strategy, Gap Inc.
Janie and Jack will continue to be based in San Francisco. Go Global, which describes itself as a brand investment platform for investors in the consumer sector, will invest in Janie and Jack's digital capabilities, including artificial intelligence and predictive analytics. The company said its international reach will open new markets for Janie and Jack in the U.K., Europe and Asia.
“Our plan is to expand the company's [Janie and Jack] digital capabilities and accelerate online growth globally," said Jeff Streader, founder and managing partner of Go Global, which bought Mod Cloth https://chainstoreage.com/walmart-selling-modcloth from Walmart in fall 2019.
Gap acquired Janie and Jack in March 2019 from Gymboree Corp.
"We are thrilled to work with this team of experienced retail professionals who are as passionate about growing our strong, stand-alone brand as we are,” said Shelly Walsh, general manager of Janie and Jack.
Christian Feuer, managing director of Go Global added: "Our team of experienced retail and brand practitioners will complement the existing dynamic management team in areas of digital strategy, international business development, supply chain and global operations. Growth is our ultimate goal."
Go Global's investment partners in this deal include Axar Capital Management and MidCap Financial as well as strategic investors Dallas-based FB Flurry and Shanghai-based Ven Bridge.