Gymboree to File for Bankruptcy, Liquidation Likely for All of its Stores
Children's clothing retailer Gymboree Group is expected to file for bankruptcy protection as soon as this week, in what would be its second bankruptcy filing in less than two years, a person familiar with the situation told CNBC. As part of the bankruptcy process, the company expects to close much of the roughly 900 stores it operates under the Gymboree, Janie and Jack, and Crazy 8 brands, the person said. Gymboree Group is also trying to sell its high-end brand, Janie and Jack, which could save the brand and its roughly 139-store footprint, the person said.
Total Retail's Take: This news was forecast at the end of last year, and appears to be coming to fruition. Gymboree has been challenged to overcome debt associated with its 2010 buyout, coupled with an overexpansion of its retail store presence, and the result is a company that has been unable to turn a profit. Sluggish sales were the nail in the coffin so to speak for Gymboree. A bankruptcy filing and liquidation of its stores means Gymboree could be the first retailer to go out of business in 2019. The bad news is there could, and likely will, be others to follow (see Sears).