Gymboree plans to close 375 stores amid bankruptcy
Gymboree plans to close 375 stores amid bankruptcy

Children's clothing retailer, Gymboree Corp has filed for Chapter 11 bankruptcy and plans to cut its debt by around $1 billion and close 375 stores, according to court records.

The operator of Gymboree, Janie and Jack and Crazy 8 stores joins a growing list of specialty retailers and department stores that have closed thousands of locations or filed for bankruptcy this year as consumers shift toward online shopping.

James Mesterharm, Chief Restructuring Officer, Gymboree, said, "The company was hurt by lower-cost competition from rival brick-and-mortar chains Children's Place and The Gap Inc, which have less debt financing."

According to Mesterharm, Gymboree's lenders agreed to provide a $35 million loan to finance the company's operations and will invest $80 million into the company when it emerges from bankruptcy.

Daniel Griesemer, CEO, Gymboree, said, "We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape."

The company estimated it had $755.5 million in assets and $1.37 billion in debt, according to court records.

Gymboree said 35 percent of its 1300 stores are leased from GGP Inc and Simon Property Group Inc.

 

 
Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading