Gymboree to file for bankruptcy, close 900 stores, according to reports
NEW YORK, NY - JUNE 13: People walk by the children's clothing retailer Gymboree, which has filed for bankruptcy protection.(Photo by Spencer Platt/Getty Images)
TAMPA, Fla. (FOX 13) - The children's clothing store Gymboree is expected to file for the second bankruptcy in two years and is planning to close all 900 of its stores.
Gymboree also operates stores under brands "Janie and Jack" and "Crazy 8" in addition to its namesake brand.
The decision came weeks after the company said it had begun a strategic review of Gymboree, Janie and Jack and Crazy 8, the three brands it operates, with an eye toward a potential sale.
Company officials have yet to determine a course of action for the Janie and Jack brand, according to the report. Without a buyer, the brand’s stores could also liquidate.
Gymboree first filed for bankruptcy protection in July 2017, in a move company CEO Daniel Griesemer said was meant to achieve “greater financial flexibility.” The company closed 350 stores and shed $900 million in debt during the proceedings, while also granting control to its lenders.
Like many traditional retailers, Gymboree has struggled to maintain store traffic and sales amid the rise of e-commerce competitors. Former industry giants such as Sports Authority and Toys R Us have filed for bankruptcy and gone out of business in recent years.