Gymboree Is Officially Filing For Bankruptcy — And Closing 700 Stores!
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All of those cute kiddo clothes…
It’s coming to the end of an era for one of our favorite children’s clothing stores, Gymboree. After some talk of a potential bankruptcy filing, The Gymboree Group has officially declared bankruptcy for the second time in less than two years. It will begin shutting down 700 of its Gymboree and Crazy 8 stores, though an affiliate of Goldman Sacs has set the floor for an auction of the high-end Janie and Jack brand.
“We are saddened and highly disappointed that we must move ahead with a wind-down of the Gymboree and Crazy 8 businesses. At the same time, we are focused on using this process to preserve the Janie and Jack business – a strong brand that is poised to grow – by pursuing a sale of the business as a going concern.” – Shaz Kahng, CEO of Gymboree Group
It was only two summers ago in June 2017 when Gymboree closed around 350 of its stores. In the process, Gymboree managed to reduce their debt by $900 million, and we got to see tons of hot clearance deals!
The closing shouldn’t come as a huge surprise to any investors as Gymboree Group shared a press release in December 2018, announcing they were undergoing a “strategic review process to reposition the company”. This meant specifically evaluating their retail footprint with intentions to close all Crazy 8 brand storefronts and significantly reduce the number of Gymboree stores as well.
Now that the bankruptcy filing is official, it’s safe to say that we can expect to see similar clearout sales from the first bankruptcy once the stores begin the process of selling off inventory for closing.
We’ll share more details as we have them and keep you all posted!