Gap Inc. selling Intermix to private equity firm

Gap Inc. is about to have one less brand in its portfolio. The parent company of Gap, Banana Republic, and Old Navy, will be selling its higher end multi-brand retailer Intermix to private equity firm Altamont Capital Partners.

Altamont will acquire all of Intermix’s assets, including all store leases and e-commerce. The purchase price of the deal was not disclosed.

Gap Inc. acquired Intermix in 2012, and the retailer now has 31 locations and an online business. Gap Inc. has been in turnaround mode for several years, and unloading Intermix is seen as part of their new business strategy. Intermix was seen as an outlier in Gap’s portfolio given its mutilbrand model.

Looking at Gap Inc.’s individual brands, Gap and Banana Republic have been weak performers for the past several years. The sweet spots in Gap Inc.’s portfolio are Old Navy and Athleta, the former of which recovered after a weak 2019, and the latter being aided by the growth in the athleisure market.

The hope for Gap is they now have a Yeezy collaboration to look forward to thanks to a new partnership with Kanye West. In the fourth quarter, Gap also saw its first positive comp in three years.