Traffic passes by an Old Navy and GAP stores in Times Square, March 1, 2019 in New York City.
Drew Angerer | Getty Images
Gap Inc.‘s plans to spin off its once-star Old Navy brand are being called into question with CEO Art Peck ousted.
The San Francisco-based apparel retailer announced Thursday evening Peck would step down from his role, effectively immediately, having been CEO since 2015. Peck has been replaced temporarily by the son of Gap’s founders.
With Peck’s abrupt departure, analysts are doubting a looming split of Old Navy and Gap will go through, especially with the Old Navy brand in such poor shape.
Gap shares were falling more than 9% in premarket trading Friday. The stock, as of Thursday’s market close, has tumbled nearly 30% this year. Gap is valued at roughly $6.9 billion.
The company announced in February it planned to split Gap Inc. into two publicly traded companies — one with only the Old Navy brand. And another with the namesake Gap brand, Banana Republic and…