Gap Inc. dumped Paul Pressler as chief executive Monday after a year of broken promises that culminated in a dismal holiday shopping season to deepen the clothing retailer's misery.
Pressler, Gap's CEO since September 2002, will receive a severance package valued at $14 million as he walks away from the turmoil that has raised questions about the company's future.
The San Francisco-based company, which owns 3,100 stores under the Gap, Old Navy and Banana Republic brands, has been mired in a sales funk since the spring of 2004.
Gap named Robert J. Fisher, the son of founder Donald Fisher, as interim CEO.
There's been rumors for months that Gap could be a target for a private equity takeover. Perhaps ousting Pressler is a prelude to a deal going down.