CNBC's Faber: Gap Sale Possible

CNBC’s David Faber reported this afternoon that GapInc. has hired Goldman Sachs to help it find some strategic business alternatives. There’s speculation that a sale is possible. Whether that means company's founding family-- the Fishers--will take the retail giant private or a private equity will buy it out remains to be seen.

The talk of a sale is purely conjecture at this point. A Gap spokesman declined comment, saying the murmurings were just rumor and speculation. As Faber notes, there are numerous ways aside of a sale for the company to boost its stock prices and earnings, such as spinning off the still-popular Banana Republic chain.

There is also talk that company President and CEO Paul Pressler would be fired.

Gap--a company that generates $15 billion in revenue--hired Goldman before Christmas after suffering a rather dismal 2006, which was capped off by an 8% decline in same-store sales in December.

Since Faber’s report, Gap stock has jumped almost 8%.

Contact Street Signs

  • Showtimes

    United States
    Monday - Friday 2:00P ET
    Monday - Friday 20:00 CET
    Tuesday - Saturday 02:00 SIN/HK
    Tuesday - Saturday 04:00 SYD
    New Zealand
    Tuesday - Saturday 06:00 NZ
  • "Street Signs" Co-Anchor

  • Co-anchor of CNBC's "Street Signs," Amanda Drury is based at the network's global headquarters in Englewood Cliffs, N.J.