Retailers Charlotte Russe, Gymboree risk bankruptcy

Two struggling clothing retailers — Charlotte Russe and Gymboree — are reportedly close to filing for bankruptcy.

Women’s apparel chain Charlotte Russe is reportedly considering filing for bankruptcy or selling, according to reports in The Wall Street Journal and on CNBC.

The company has hired Guggenheim Securities to explore strategic alternatives. The 500-plus-store company thinks it can avoid bankruptcy by increasing scale and size through a sale or partnership, reports said.

The company is struggling to adjust to changing consumer shopping habits nearly a year after making a deal to cut its debt from $214 million to $90 million.

Charlotte Russe has two stores in the Columbus area: at the Mall at Tuttle Crossing and Polaris Fashion Place.

Meanwhile, children’s clothing retailer Gymboree is expected to seek bankruptcy protection this week and close all 900 of its stores, according to several reports.

The action comes less than two years after the retailer’s first bankruptcy filing, when it was burdened by more than $1 billion in debt stemming from a leveraged buyout by Bain Capital Private Equity in 2010.

Gymboree operates stores under the banners Gymboree, Janie and Jack and Crazy 8. In December, Gymboree announced it began a strategic review of the three brands, which could result in a sale or other transactions at the brand level.

In the Columbus area, Gymboree has locations at Easton Town Center, the Mall at Tuttle Crossing and Polaris Fashion Place. Janie and Jack has a location at Polaris Fashion Place. Crazy 8 has locations at the Mall at Tuttle Crossing and Polaris Fashion Place.