Gap has dropped plans to spin off its Old Navy banner into a separate publicly-traded company, the retailer said, citing the expense and other difficulties that would be involved. Sales at Old Navy have softened since Gap first proposed the spinoff last year.
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Gap's planned spinoff of Old Navy has the potential to raise cash the company needs to paid down debt and focus on growing its other brands. Analysts offer mixed views on whether it's the right time to separate Gap's most successful brand from the pack.