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%.