Gap Inc, the global clothing retailer, is believed to be considering a sale of the business after it unveiled disappointing results for the seventh consecutive quarter.

The company is widely reported to have hired investment bank Goldman Sachs to explore strategic options for the business, which has a stock market value of $16bn. Gap has so far refused to confirm the reports, calling them “rumour and speculation”.

Latest results for December, released last week, show an eight percent drop in revenue at comparable stores, and performance over the last two years has been shaky, with sales falling in 28 of the last 31 months. The company also announced plans to review its Gap and Old Navy brand strategies, and today revealed that two top executives from these brands are will be departing. 

Analysts believe that the most likely buyer for Gap would be an investment or private equity firm, such as Blackhawk Partners or Texas Pacific, while others have suggested that the company may choose to divest just one of its divisions, such as Banana Republic. 

Founded in 1969, Gap has more than 3,000 stores worldwide, including 134 in the UK, and employs over 150,000 people. 

The outcome of the reported Goldman review is expected by the end of the month.