Gap has scrapped its plan to separate fashion brand Old Navy from the rest of the group.

Gap revealed its plans to break up the fashion group last year – which includes Gap, Old Navy and Banana Republic – but has now said the “cost and complexity” of the plans are no longer worth continuing.

The fashion group also said Gap’s head of brand Neil Fiske was standing down. The news comes just two months after chief executive Art Peck left the business.

Separating Old Navy was originally welcomed by investors but since then the whole group has been lagging, according to the Financial Times.

Gap’s like-for-like sales fell 4% during its fourth quarter compared with the same period the previous year.

Gap chair Robert Fisher said the original plan “remains relevant” and the preparation work “shone a bright light on operational inefficiencies”.