Gap Inc has turned to Richard Dickson, credited with turning around the Barbie brand at Mattel, to lead the struggling retailer's revamp efforts after years of inconsistent sales and profits.
The exit of Art Peck in 2019 after nearly four years as CEO in the middle of a restructuring plan to split Old Navy and its namesake brand weighed on the company's fortunes.
Here is a timeline of the major problems at the company:
Date Events
Nov. 7, 2019 CEO Art Peck marks surprise exit in the
middle of a restructuring and Robert Fisher,
a member of the founding family behind Gap,
was named interim CEO
Nov. 21, 2019 Reiterates plan to separate Old
Navy from the namesake brand that has been
underperforming for a long time
Jan. 16, 2020 Gap scraps plan to spin off Old Navy and
instead aims to work to stem dropping sales
March 5, 2020 Names Old Navy head Sonia Syngal
as its new CEO replacing interim chief Robert
Fisher who stepped down as chairman of Gap's
board
March 12, Gap flags a $100 million sales hit in Asia
2020 and Europe from the coronavirus, which also
impacts its home market
March 18, Gap closes stores for two weeks to stem the
2020 spread of the novel coronavirus
March 26, The company withdraws annual forecast,
2020 suspends its dividend and draws down on its
entire $500 million credit facility to
weather the coronavirus crisis
April 23, Gap warns it may not have enough funds to run
2020 its operations in the next 12 months and says
would need to cut costs and raise money by
issuing debt.
June 4, 2020 Reports a quarterly loss of
nearly $1 billion
June 26, 2020 Gap enters into a 10-year deal with rapper
and fashion designer Ye, or Kanye West, to
create a Yeezy line of clothing
Oct. 21, 2020 The company considers closing stores in some
European countries, as it looks to save cash
while dealing with a sales slump brought on
by the pandemic and competition from
fast-fashion companies
June 30, 2021 Gap in talks with its partners to sell its
stores in Italy and France
July 11, 2022 Gap's CEO Sonia Syngal to step down just over
two years into the role, as it wrestles with
weak demand for its casual attire and a slump
in its stock price
Aug. 25,2022 An inventory glut and weak sales of outdated
clothes prompt Gap to withdraw annual
forecasts
Sept. 15, Kanye West's lawyers sends a letter to Gap
2022 notifying that the rapper and fashion
designer was terminating his partnership
Sept. 20, Gap eliminates about 500 corporate jobs
2022
April 27, The company cuts about 1,800 jobs in a second
2023 round of layoffs
July 26, 2023 Gap names Mattel's chief operating officer,
Richard Dickson, as top boss after a
year-long search
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)
