Gap Inc acquires childrenswear retailer Janie and Jack

Gap Inc has added US childrenswear chain Janie and Jack to its portfolio having acquired the business in a $35m deal.

The 100-store premium fashion chain, which also runs an e-commerce site, will continue to be based as a standalone business in San Francisco.

"I am pleased to welcome Janie and Jack to the Gap Inc. family and to expand our portfolio into the premium kids and baby business,” said Art Peck, President and CEO of Gap Inc. “Janie and Jack has a strong and loyal customer following that complements our existing brands, with a clear path for growth ahead.”

Janie and Jack general manager Shelley Walsh added: “This is an exciting outcome for Janie and Jack, and we are incredibly pleased that our brand will continue to serve our customers with its unique modern classic aesthetic as part of the Gap Inc. family.”

“We are thrilled to be joining another San Francisco Bay Area retailer who shares our passion for creating and providing high-quality clothing and delivering exceptional customer experiences. I want to thank all of our Janie and Jack employees for their hard work and dedication to building a strong brand with a bright future.”

The move comes days after Gap revealed it would be splitting its business into two companies, one of which will consist of the eponymous brand and others including Banana Republic and another yet to be named "New Co" housing Old Navy, which has been outperforming its stablemates.

Gap also said it would be closing 200 stores globally over the next two years. At the end of 2018, the business ran 1,242 company-operated Gap shops worldwide with 152 in Europe, the majority of which were in the UK. For fiscal year 2018 the group's net sales were $16.6bn.