Up to 450 stores could close amid Gymboree bankruptcy
Children’s clothing retailer Gymboree Corp. has filed for Chapter 11 bankruptcy protection as it looks to reorganize and reduce its debt.
As part of the reorganization, the San Francisco company said it plans to close “certain stores,” but the exact timing and final list of closures are still being determined. According to court documents, up to 450 stores could be closed.
The privately held company said that the majority of its stores will remain open and that Gym boree will conduct business as usual.
The company said it has received $35 million in new debtor-in-possession financing from the majority of its term loan lenders and up to $273.5 million in additional financing from existing lenders.
“The support of our lenders and their new financing commitment underscores their confidence in the company,” Gymboree CEO Daniel Griesemer said in a statement. “We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape.”
Gymboree owns three brands: Gymboree, Janie and Jack, and Crazy 8. As of April, it said it operated 1,281 retail stores in the U.S. and Canada.
Gymboree is the latest company to face trouble in the changing retail landscape. Last week, Ascena Retail Group, which owns brands such as Ann Taylor, Loft, Lane Bryant and Dress Barn, said it would close more than 250 stores over the next two years.