• by Sarah Mahoney  @mahoney_sarah, March 28, 2021

Gap, which wants to concentrate on its bigger brands, is shedding Janie and Jack. Go Global Retail is the new owner of the children's line and says it plans to expand the small company's ecommerce business.

For this deal, Go Global says it is partnering with a handful of other investors in the U.S. and China, including Axar Capital Management, based in New York, MidCap Financial in Bethesda, Maryland, and Shanghai-based Ven Bridge, Ltd.

Neither company disclosed the terms of the deal.

Gap bought the chain for $35 million from struggling Gymboree Corp. back in 2019, saying it planned to operate the company as a stand-alone business.

In its statement, Gap says the sale will better allow it to focus on its latest strategy, "prioritizing strategic focus and resources behind the growth and potential of our billion-dollar brands in Old Navy, Gap, Banana Republic and Athleta."

Go Global Retail already owns women's apparel D2C brand ModCloth, which it acquired from Walmart in 2019.

Janie and Jack, founded in 2002, has 115 retail stores in the U.S., and Go Global says its goal is increasing ecommerce sales.

"Our plan is to expand the company's digital capabilities and accelerate online growth globally," says Jeff Streader, founder and managing partner, in its announcement.

The move comes as Gap continues to find its way through a retail world dramatically reshaped by COVID-19. In its more recent quarter, comparable-store sales came in flat, with total sales dipping 5%. Digital sales climbed 14% and now represent 45% of total sales.

Gap, the largest specialty apparel company in the U.S., says sales fell 19% in the quarter at its Gap flagship and 27% at Banana Republic. They rose 5% at Old Navy and 29% at Athleta.

Citing data from the NPD Group, Gap says its overall market share gained by 0.2 percentage points, ending the year at 5.5% of total U.S. apparel sales.