Gap plans to shut 50 percent of its srores, as around 230 outlets will be closed over the next two years in a bid to restructure the brand's business.
Gap Inc said the closures would mainly be in North America, thus leaving 742 Gap stores globally.
The retailer also announced on Thursday that it plans to split into two independent publicly traded companies, Old Navy and another one company that is yet to be named.
The plan is expected to be completed in 2020, subject to final approval by Gap's board.
The announcements came as Gap Inc. reported disappointing sales for the holiday quarter.