Gap Inc. Acquires Janie and Jack Stores
One week after Gap Inc. said it would be splitting into two separate, publicly traded companies, the company announced it had purchased the Janie and Jack retail chain from children’s retailer Gymboree Group Inc. for $35 million.
Janie and Jack, a higher-end childrenswear purveyor, operates more than 100 stores in the United States as well as an e-commerce site. The store will continue to operate as a stand-alone operation based in San Francisco, where Gap Inc. is also headquartered.
Under the new agreement, which was completed on March 4, Gap Inc. will also purchase the Janie and Jack inventory at cost plus additional fees and expenses.
“I am pleased to welcome Janie and Jack into the Gap Inc. family and to expand our portfolio into the premium kids’ and baby business,” said Art Peck, president and chief executive of Gap Inc., in a statement. “Janie and Jack has a strong and loyal customer following that complements our existing brands with a clear path for growth ahead.”
Janie and Jack stores offer well-crafted children’s fashions for boys and girls. Think boys in pastel plaid jackets and girls in bouclé dresses, ruffled tops and ballet-slipper flats. The stores stock sizes 0 to 6 years and online sizes up to 12 years at janieandjack.com.
In recent years, Gymboree has been having major financial problems. In June 2017, it filed for Chapter 11 bankruptcy protection but emerged from bankruptcy five months later.
Then, on Jan. 17, the company again filed for Chapter 11 bankruptcy, closing all its Gymboree, Gymboree Outlet and Crazy 8 stores, which have more than 900 locations. At the time, it announced it would be selling its more profitable Janie and Jack stores.
In a recent bankruptcy-court filing, Gymboree stated that Children’s Place Inc. will pay $76 million for Gymboree’s Crazy 8 and Gymboree brands.
Next year, Gap Inc. plans to split into two separate companies. One will consist of the Old Navy brand and be called Old Navy. The other new company, which for now is being referred to as NewCo, will include Gap Inc.’s other brands of Gap, Banana Republic, Athleta, Intermix and Hill City.