Gap will shutter 230 stores as sales plunge

• Gap is closing 230 of its namesake stores over the next two years.
• More than half of the closings will happen in 2019.
• Gap also reported Thursday that sales at its namesake brand fell 7% during the critical holiday quarter.

Gap announced plans Thursday to shutter 230 Gap stores over the next two years.

The company revealed the closings as part of a restructuring plan that includes the spin-off of its Old Navy brand. Gap also reported Thursday that sales at its namesake brand fell 7% during the critical holiday quarter.

Gap will close about 130 Gap stores, or more than half of the fleet slated for closure, in 2019, the company said.

Gap said it estimates an annualized sales loss of approximately $625 million as a result of the store closures and pre-tax costs of $250 million to $300 million.

This is breaking news. Check back for updates.

NOW WATCH: McDonald's just added 'Donut Sticks' to its breakfast menu - here's our verdict