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 the ouster of CEO Art Peck.
The San Francisco-based apparel retailer announced Thursday evening that Peck has stepped down from the position he had held since 2015. Peck has been replaced temporarily by Robert Fisher, son of Gap’s founders Donald and Dorothy Fisher.
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 down 7% Friday morning. The stock as of Thursday’s market close had tumbled nearly 30% this year. Gap is valued at roughly $6.9 billion.
The company announced in February it planned to split Gap into two publicly traded companies — Old Navy and Gap, which would still have been led by Peck and would include Banana Republic and athletic…