US speciality retailer Gap Inc has officially purchased Gymboree Group’s premium children’s fashion brand Janie and Jack for US$35m.
The news broke yesterday (4 March) with Gap telling just-style it was “excited about the potential opportunity to acquire Janie and Jack” in a move that would expand its customer base in a “desirable category with a loyal brand following”.
Go deeper with GlobalData
Hours later Gap announced it purchased the brand which operates more than 100 retail stores in the US along with an e-commerce site.
The transaction is in addition to a separate agreement to purchase the Janie and Jack inventory at cost plus additional fees and expenses.
“I am pleased to welcome Janie and Jack to the Gap Inc family and to expand our portfolio into the premium kids and baby business,” said Art Peck, president and CEO of Gap Inc. “Janie and Jack has a strong and loyal customer following that complements our existing brands, with a clear path for growth ahead.”
The move comes just days after Gap announced the closure of 230 of its namesake brand stores and revealed plans to spin off the group’s Old Navy brand into an independent, publicly traded company.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe split will see Old Navy become a standalone company while the group’s remaining Gap, Athleta, Banana Republic, Intermix and Hill City labels will operate under a yet-to-be-named business (NewCo).
Meanwhile, Shelly Walsh, general manager of Janie and Jack, said the brand is “incredibly pleased” it will continue to serve its customers as part of Gap Inc.
“We are thrilled to be joining another San Francisco Bay Area retailer who shares our passion for creating and providing high-quality clothing and delivering exceptional customer experiences,” she added. “I want to thank all of our Janie and Jack employees for their hard work and dedication to building a strong brand with a bright future.”
Janie and Jack will continue to operate as a standalone brand based in San Francisco.
Gymboree Group filed for voluntary Chapter 11 bankruptcy protection for the second time in January.
