Jan 3 Gap Inc will buy women's fashion
boutique Intermix Inc for $130 million to enter the luxury
clothes market, the Wall Street Journal reported.
The casual-clothes retailer plans to double Intermix's store
count and look for opportunities to expand the chain overseas,
the Journal said, quoting Art Peck, president in charge of new
brands at Gap.
Intermix, which does not produce its own clothes and has
about 30 stores in the United States and Canada, has
relationships with designers, including Herve Leger, Yves Saint
Laurent and Rag & Bone, from which Gap could benefit.
"We are the incubator with emerging brands and we can help
them out with collaborations," Intermix founder and chief
executive, Khajak Keledjian told the Wall Street Journal.
Keledjian will remain at the company as chief creative officer.
The deal is the latest by Gap since it paid $150 million in
2008 for women's active apparel retailer Athleta, an acquisition
aimed at tapping demand for yoga and workout gear, the Journal
Officials with Gap could not be reached for comment outside
regular U.S. business hours.
Gap, which competes with Swedish retailer H & M Hennes &
Mauritz AB's H&M and Inditex Group's Zara, is
also closing about a fifth of its North American namesake
stores, the Journal said.