Gymboree Preparing for Bankruptcy
Gymboree, the San-Francisco based major children’s clothing retail store, is reportedly filing Chapter 11 bankruptcy. With over one billion dollars of debt, Gymboree is expected to not only file for bankruptcy protection, but also close all of its stores.
A report from The Wall Street Journal states that the company will file bankruptcy in order to liquidate Gymboree, Crazy 8, and Janie and Jack stores. The Janie and Jack stores may be saved if a buyer is found by the company for the brand. Currently, approximately 139 Janie and Jack stores are in operation across the nation.
Gymboree actually filed for bankruptcy once already, in the summer of 2017. This lead to about 350 store closures, mostly Gymboree. Now the company has around 900 retail stores in the U.S. and Canada operating under the three brands.
In the 1970’s, when Gymboree was founded, the company offered activity and music classes. Later, in the 1980’s they launched a chain of clothing stores. The Gymboree Play & Music, in 2016, became a standalone brand owned by an education company. The bankruptcy, according to representatives, does not include these franchised Play & Music centers.