Gap and Old Navy are splitting up.
Gap announced plans Thursday to separate Old Navy from Gap, Banana Republic and Athleta and create two publicly traded companies.
“Each company now requires a different strategy to thrive moving forward,” said Robert Fisher, Gap’s board chairman.
Gap stock was up 19% in after hours trading.
The Gap used to be the coolest brand in retail: It rode the mall boom in the back half of the 20th century, and its logoed sweatshirts and turtlenecks won over everyone from teens to moms and celebrities like Sharon Stone.
But the brand fell out of touch with the Baby Boomers who grew up on the brand, and it failed to attract the Millennials who drive fashion trends today.
Gap said Thursday that Sonia Syngal, CEO of Old Navy, will keep running that brand. Art Peck, the Gap’s CEO, will lead the other company.
This story is developing.