The Gap Inc. confirmed on Monday that it has expanded into premium kids and baby apparel with the purchase of the Janie and Jack brand from Gymboree Group Inc. for $35 million, following the children’s clothing retailer’s second filing for bankruptcy in January.
News of the acquisition first came to light in bankruptcy court documents published on Saturday, which also revealed that The Children’s Place Inc. was planning to purchase $76 million in assets from Gymboree.
The transaction between Gap and Gymboree, which completed on Monday, was also accompanied by an additional agreement that Gap will purchase Janie and Jack’s inventory at cost plus additional fees and expenses.
Following the acquisition, Janie and Jack, which operates over 100 stores around the US and an e-commerce website, will continue to function as a standalone brand based at its HQ in San Francisco.
“I am pleased to welcome Janie and Jack to the Gap Inc. family and to expand our portfolio into the premium kids and baby business,” said Gap President and CEO Art Peck in a release. “Janie and Jack has a strong and loyal customer following that complements our existing brands, with a clear path for growth ahead.”
“We are thrilled to be joining another San Francisco Bay Area retailer who shares our passion for creating and providing high-quality clothing and delivering exceptional customer experiences,” added Janie and Jack General Manager Shelly Walsh. “I want to thank all of our Janie and Jack employees for their hard work and dedication to building a strong brand with a bright future.”
The acquisition comes hot on the heels of Gap’s announcement that it will be splitting from its Old Navy brand to become two separate publicly traded companies, news which sent the apparel group’s shares soaring as Wall Street lauded the move.
The company also announced that will be launching a comprehensive restructuring of its stagnant flagship Gap brand, including plans for widespread store closures and a push to modernize the label’s marketing.