Goldman falls in to the Gap

Hope springs eternal when you're a tattered-yet-venerable brand. Shares of The Gap, Inc. (NYSE:GPS) jumped to their highest point in two years when CNBC reported this afternoon that the company had hired Goldman Sachs Group Inc. (NYSE:GS). The company won't say for what, and Goldman isn't talking either. But it's unlikely the retailer hired the butchest investment bank on the Street to ask it what it thinks of its Audrey Hepburn skinny pants.

A deal in the making? Maybe. The Gap's been in a funk for a while. Holiday sales were lower than expected, and the company -- which also owns the Old Navy and Banana Republic chains, is on the record as saying it might rethink its branding strategy.

And it is a leading brand -- great name recognition -- but with really sucky fundamentals. That makes it fairly ripe for a private picking.

Gap's current team seem to be at a loss for how to recoup its retailing glory. And you don't have to be a retail analyst to see that the company has lost its way over the years. The Gap is everywhere. But have you been into one lately? Blah clothes in blah colors that are cheaply made and rather overpriced. Gap used to be known for doing the basics really well - T-shirts and jeans. Maybe a cool sweater or cute tank. Everyone fell into the Gap. What happened?

The company doesn't seem to have the answer to that question. Maybe Goldman does.