Gap Inc acquired Janie and Jack in 2019 and today the brand has about 115 store locations in the United States and an e-commerce business

Gap Inc acquired Janie and Jack in 2019 and today the brand has about 115 store locations in the United States and an e-commerce business

US specialty clothing retailer Gap Inc is to sell its Janie and Jack business to brand investment platform Go Global Retail as part of its bid to focus on its billion-dollar Old Navy, Gap, Banana Republic and Athleta labels.

Go Global Retail intends to acquire the entire Janie and Jack business, including the e-commerce platform, all store leases, and assets. 

The firm says its international reach will open new markets for Janie and Jack in the UK, Europe and Asia, while it plans to make investments in the brand's digital capabilities including artificial intelligence and predictive analytics.

Janie and Jack, which offers sizes from newborn through tween, currently has about 115 store locations in the United States in addition to its e-commerce business.

"Our plan is to expand the company's digital capabilities and accelerate online growth globally," said Jeff Streader, founder and managing partner of Go Global.

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." 

As part of the deal, the terms of which were not disclosed, Janie and Jack will continue to be based in San Francisco and, as a freestanding, independent fashion brand, will maintain focus on its core customers who desire a modern take on children's fashion.

Aligned to its Power Plan 2023, Gap Inc is focused on growing its purpose-led, lifestyle brands by leveraging the power of its portfolio and platform.

"As part of Gap Inc's Power Plan 2023, and exemplified by this transaction, we are prioritising strategic focus and resources behind the growth and potential of our billion-dollar brands in Old Navy, Gap, Banana Republic and Athleta," said Gap Inc head of strategy, Sally Gilligan.

Outlining the plan in October, the retailer said it is turning its focus to growing the Athleta and Old Navy brands to account for 70% of revenue by FY23, from the current level of around 55%. Management also wants to see Old Navy revenues reach US$10bn, and Athleta revenues double to $2bn by 2023 – helped by the annual addition of 30-40 new Old Navy stores and 20-30 new Athleta stores in smaller markets where the population is under 200,000.

Gap Inc acquired Janie and Jack in March of 2019 for $35m. The Go Global transaction is expected to close on 2 April.

Go Global's investment partners in the acquisition include Axar Capital Management, MidCap Financial, as well as strategic investors FB Flurry, and Ven Bridge, Ltd.

Go Global Retail is a brand investment platform that acquired women's clothing company and online retailer ModCloth from Walmart. It is led by industry veteran and sourcing expert Jeff Streader who spoke with just-style at length about how Go Global's new M&A model puts garment makers at the heart of the deal