Gymboree files for bankruptcy protection

• Children’s cl othing s ell er Gymboree Corp. has filed for U. S. Chapter 11 bankruptcy protection, the latest sign of traditional retailers’ struggles as shoppers shun stores and buy online.

The San Francisco- based company said it is seeking to reduce its debt load by US$ 900 million, and it expects to operate its business and the majority of its 1,300 stores during the restructuring.

Gymboree is the latest retailer this year to file for Chapter 11, close stores or go out of business. Mall- based clothing stores have been especially hard- hit. Ascena Retail Group, the owner of brands including Ann Taylor, Loft, Lane Bryant, Dress Barn and Justice has said it plans to close at least 250 stores. Ascena said about 400 more will be shut if it doesn’t get rent concessions.

Earlier this year, Payless Shoe Source filed for bankruptcy protection and The Limited closed all 250 of its remaining stores.

Gymboree s ays s ome stores will be closed as part of the restructuring, but the timing of that and which shops will be closed have yet to be determined. It operates its namesake stores as well as Crazy 8 and Janie and Jack shops.

“We e x pec t to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape,” CEO Daniel Griesemer said in a state- ment issued Sunday.

Gymboree says it has secured US$ 308.5 million in financing to keep the company operating through the Chapter 11 process.

The firm also announced that its CFO, Andrew North, is stepping down. Liyuan Woo, a director at consulting firm AlixPartners, was named interim CFO.

Gymboree was taken private in 2010 when it was bought by private equity firm Bain Capital for US$1.8 billion.