The Gap Inc. could fall into a buyout firm's portfolio, if a CNBC report that the retailer hired Goldman Sachs Group Inc. to explore "alternatives" is true. When other media outlets contacted The Gap about the report, spokesmen refused to comment. However, the company has had a banking relationship with Goldman Sachs since 1995. Despite the speculative nature of the news, the report seems logical considering the company had a bad holiday season prompting it to announce plans to rethink branding of not only its namesake but also its other brands, Banana Republic and Old Navy. The company is expected to announce the rebranding efforts by March 1. Despite its troubles, The Gap maintains $16 billion in annual sales — its main competitors The Limited and H&M would have to combine their annual sales just to beat those figures. The strong cash flow could pique the interest of a number of buyout firms. — Matthew Wurtzel
See video from CNBC
See report from CNBC
See story from Bloomberg
See story from Reuters
See post from Blogging Stocks
See post from Dealbook
Continue reading below
