  We discuss the fate of the Z2 symmetry and the vacuum structure in an
SU(N)xSU(N) gauge theory with one bifundamental Dirac fermion. This theory can
be obtained from SU(2N) supersymmetric Yang--Mills (SYM) theory by virtue of Z2
orbifolding. We analyze dynamics of domain walls and argue that the Z2 symmetry
is spontaneously broken. Since unbroken Z2 is a necessary condition for
nonperturbative planar equivalence we conclude that the orbifold daughter is
nonperturbatively nonequivalent to its supersymmetric parent. En route, our
investigation reveals the existence of fractional domain walls, similar to
fractional D-branes of string theory on orbifolds. We conjecture on the fate of
these domain walls in the true solution of the Z2-broken orbifold theory. We
also comment on relation with nonsupersymmetric string theories and
closed-string tachyon condensation.
