Gap is buying a high-end kid's fashion line as the company tries to escape its cheap image and spins off Old Navy

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Gap plans to acquire Janie and Jack.

plans to acquire Gymboree's high-end kid's clothing brand Janie and Jack for $35 million, as it takesvalue-focused brand Old Navy to create two separate companies.

According to the document, filed in a US Bankruptcy Court in Richmond, Virginia, Gap plans to buy the brand's intellectual property, e-commerce site, customer data, and other assets for $35 million. The company is currently owned by Gymboree, a children's clothing company that filed for

 

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Gap to spin off Old Navy as stand-alone company, stock skyrockets more than 25%Gap Inc. stock surges in the extended session Thursday after the retailer says it will split itself into two publicly traded companies, one consisting of its Old Navy brand and a yet-to-be-named company with its Gap, Athleta, Banana Republic, Intermix, and Hill City brands, as sales at the flagship Gap brand fell 5% globally in the fourth quarter.
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