Gap Buys Intermix for $130 Million
Gap acquires Intermix!
Gap is mixin' things up with its' latest venture.
A couple weeks ago, Women's Wear Daily exclusively reported that Gap was teaming up with luxury boutique Intermix for an undefined partnership.
Kicking off 2013, WWD announced today that Gap Inc. officially acquired the specialty retailer for a whopping $130 million in cash.
The $15 billion San Francisco-based retailer has been aiming to reinvent itself for the past several years, gearing toward a J.Crew-type trendy turnaround.
This recent deal will give Gap the edge it needs to secure a significant presence in the growing global luxury retail market.
According to WWD, Intermix’s senior team of Khajak Keledjian, cofounder and chief executive officer, and Adrienne Lazarus, president, will continue to operate the business from New York.
“Our [immediate] priority is growing the [core] business, increasing comp sales and adding new stores. There are a lot of opportunities out there, but we really have to first prioritize over the short term,” said Khajak Keledjian, who founded the chain with his brother Haro 19 years ago.
Glenn Murphy, chairman and ceo of Gap Inc told WWD, “Intermix has a distinctive position in this growing market with clear competitive advantage,..Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers. This strategy reflects the strength of their brand vision and leadership team.”