Gymboree preparing to file for bankruptcy and close all its stores

The company operates 900 stores in the US and Canada

Gymboree to close all locations

(Gray News) – Children’s clothing store chain Gymboree just can’t seem to find the bounce in its retail step.

For the second time in two years, the retailer is expected to file for bankruptcy protection, CNBC reported.

That means possibly shuttering all 900 stores it operates under the Gymboree, Janie and Jack and Crazy 8 brands in the United States and Canada. The retailer still hopes to sell its high-end Janie and Jack brand, which would save about 140 stores.

Gymboree last filed for bankruptcy in 2017 as it tried to deal with more than $1 billion in debt left over from a leveraged buyout by Bain Capital Partners seven years earlier.

The earlier bankruptcy resulted in the closing of 350 of the company’s 1,281 locations.

Over the summer, Gymboree touted its success on Twitter.

“Your feedback has helped us grow in all the right ways,” the tweet said.

But in December, Gymboree Group announced it had started a strategic review process to reposition the company.

At the time, the retailer said it would look at options which “may include a sale or other transactions at the brand level.”

“The process we announced today is designed to reposition the company for success by establishing a brand portfolio and store footprint that is optimized for the current retail environment. These strategic initiatives are an important next step as we continue to look for ways to unlock additional value in our brands. We are optimistic about our future as a more streamlined organization that can deliver enhanced, long-term value to its stakeholders. Our team remains focused on delivering the quality children’s clothing and accessories and exceptional service that our customers have come to expect from us.”
Shaz Kahng, Gymboree Group CEO, Dec. 4, 2018

Gymboree is expected to file for bankruptcy this week, according to CNBC.

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