(NEW YORK) Intermix’s 2013 New Year’s resolution: fall into the Gap. On December 31, 2012, the multi-brand, specialty store was scooped up by Gap Inc. for $130 million in cash, adding to the retail behemoth’s existing portfolio of brands that includes Gap, Old Navy, Banana Republic, Piperlime, and Athleta. Intermix, the boutique chain which currently counts 32 locations throughout North America, stocking luxury and contemporary ready-to-wear and accessories for women, had been searching for a partner to help further its expansion since late last year. Intermix enlisted investment banking firm, The Sage Group, to aid in the acquisition quest in August; the two retailers have been in talks since early December.
“Intermix has a distinctive position in this growing market with clear competitive advantage,” said Gap Inc. CEO and chairman Glenn Murphy in a press release. “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.”
As far as the in-house team goes, Intermix’s co-founder and CEO Khajak Keledjian will remain on board, in the capacity of chief creative officer. He will continue to work alongside Intermix president Adrienne Lazarus in the New York headquarters. Both will report to Art Peck, president of Gap’s Growth, Innovation, and Digital division. First on the agenda in the new year? Expanding Intermix’s network of stores domestically and internationally. Other projects on the docket include introducing a private label, stepping into the men’s market, and adding significant visibility to its online site.
“We’re thrilled to have found a partner that has the global scale and infrastructure required to support our vision for growth,” said Keledjian in the official release. “Gap Inc. shares many of our entrepreneurial roots, passion for innovation and customer experience. Together, we’ll continue to shape the future of retail by offering the most exciting fashion trends with the finest designers in the world.”