Gap Inc. transfers ownership of Janie and Jack brand following a 2-year period.
In a strategic move to revitalise and expand the children's brand Janie and Jack, Gap Inc. has sold the company to brand investment platform Go Global Retail. The sale, which is expected to close on April 2, 2021, includes Janie and Jack's e-commerce and more than 115 U.S. stores.
Janie and Jack, which offers sizes from newborn through tween, was purchased by Gap Inc. in 2019 for $35 million during parent company Gymboree's bankruptcy. The spinoff of Janie and Jack from Gap Inc. was never executed due to uncharacteristic struggles at Old Navy. Meanwhile, The Children's Place acquired Gymboree Group's other assets, its namesake brand and Crazy 8, for $76 million during its bankruptcy.
Art Peck, former CEO of Gap Inc., saw the acquisition of Janie and Jack as a good deal with potential for growth. Go Global Retail shares this sentiment, as they see the same potential in the brand that Peck did. The brand will continue to be based in San Francisco after the sale.
Go Global Retail's investment partners include Axar Capital Management, MidCap Financial, FB Flurry, and Ven Bridge, Ltd. Jeff Streader, Founder and Managing Partner of Go Global Retail, stated that the plan is to expand the company's digital capabilities and accelerate online growth globally.
The pandemic continues to negatively impact Gap Inc.'s business, particularly in the apparel retail sector. This sale is a strategic move by Gap Inc. to focus on its core brands and streamline its operations. Shelly Walsh, General Manager of Janie and Jack, previously spent six years at Gap Inc. before joining Gymboree Group in 2013.
Go Global Retail is known for its strategic acquisitions and revitalization efforts in the retail sector. Given their history, it is likely that they will focus on enhancing the brand's digital presence, expanding its product offerings, and possibly increasing its physical retail footprint. This could involve leveraging e-commerce platforms to boost sales and improving brand visibility through targeted marketing campaigns.
For more specific details, additional announcements from Go Global Retail would be necessary. The acquisition itself suggests a commitment to revitalizing and expanding the Janie and Jack brand, which could include strategic partnerships and innovative marketing strategies to appeal to a wider audience. Go Global Retail has previously purchased ModCloth, demonstrating their ability to successfully grow and revitalise acquired brands.
- The strategic acquisition of Janie and Jack by Go Global Retail indicates a commitment to revitalizing and expanding the children's brand, similar to their past success with ModCloth.
- Go Global Retail plans to accelerate Janie and Jack's online growth globally, possibly by enhancing their digital presence and leveraging e-commerce platforms to boost sales.
- Given their history, we can expect Go Global Retail to focus on expanding the brand's product offerings, possibly increasing the physical retail footprint, and improving brand visibility through targeted marketing campaigns.
- The pandemic's negative impact on the apparel retail sector has prompted Gap Inc. to sell Janie and Jack to Go Global Retail, enabling them to focus on their core brands and streamline their operations.
