The Gap's CEO Is Leaving, But He's Leaving Some Problems Behind

Back in the 1980s and 1990s, all the cool kids (and adults) had a pair of Gap jeans in their closets. The Gap (NYSE: GPS) was the place to shop, and the mall, where many of its stores were located, was the place to be.

Since then, less expensive but just-as-stylish competition such as H&M (OTC: HNNMY) and Inditex's (OTC: IDEXY) Zara entered the picture, and mall closures increased as consumers started spending more time elsewhere and shopping online. The Gap's reign over the world of American style slowly diminished, and these days, the company is struggling for direction and sales.

The latest low point came earlier this month when The Gap announced the unexpected departure of chief executive officer Art Peck. Robert J. Fisher, a member of the company's founding family, is taking over in the interim as a search is launched for a permanent leader.

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Source Fool.com