Gymboree May Close Hundreds of Stores
It was announced this week that Gymboree is looking to close a sizable percentage of its stores as part of restructuring under bankruptcy court protection. MarketWatch reports the children's clothing retailer has reached out to firms known for liquidating companies’ inventories and other assets to help with the closure of up to 350 stores. Discussions around the store closings are still happening, however, people close to the matter say the plan could change as it gets closer to when Gymboree seeks protection. As of July 2016, Gymboree operated more than 1,600 stores, including its branded outlet stores, Janie and Jack, and Crazy 8.
Total Retail's Take: Gymboree looks to be the next retailer to file for bankruptcy protection this year. In 2016, there were a total of nine retailer bankruptcies for the year. As of March 2017, there have already been nine retail bankruptcies this year. Retail is changing, and more and more companies are trying to find ways to stay relevant in a fast-paced environment. Gymboree competitor The Children's Place announced store closings early this year as well. With subscription commerce brands having a moment and more and more consumers preferring the convenience of shopping online, Gymboree will have to find a way to cut out a niche audience in the crowded children's apparel space.
