Gap Soars 16% After Ending Plan To Spin Off Old Navy… After Soaring 18% On Plan To Spin Off Old Navy

Late February last year, Gap announced its plans to create two independent publicly traded companies: spinning off Old Navy and a yet-to-be-named company.

Shares soared 18% on the news.

Tonight, after hours, Gap has issued a statement that it is scrapping plans to spin off its Old Navy brand.

“The work we’ve done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement,” said Gap chief executive Robert Fisher, adding that the company has “learned a lot” and intends to operate in a manner that “empowers our growth brands, Old Navy and Athleta.”

Shares soared 16% after hours…