Gymboree to close 350 stores in US
Childrenswear retailer Gymboree plans to close 350 outlets in the US as part of its restructuring effort.
Filing for Chapter 11 bankruptcy last month, the company plans to close 350 outlets, most of which are Gymboree and Crazy 8 stores.
Following the closures, the retailer will have more than 900 stores. However, the number of affected employees has not been disclosed.
Closing sales of the impacted outlets will begin next Tuesday.
On its website, the retailer stated: "As part of our court-supervised restructuring process, the Gymboree Corporation is taking necessary steps to strengthen our company as a whole by closing certain Gymboree and Crazy 8 brand stores.
“We encourage customers to visit www.gymboree.com and www.crazy8.com and use the store locator to find their next nearest store where they can continue to shop with us.
“We appreciate your ongoing business and look forward to continuing to meet your children's clothing needs for the summer, the important back-to-school season and beyond."
Great American Group and Tiger Group have been contracted to handle the closing sales.
When Gymboree filed for bankruptcy protection, it stated that it should reduce its debt by more than $900m.
It also secured commitments for up to $308.5m in additional financing.
The retailer’s sales were affected by the lower-cost competition from companies such as Gap and Children's Place, reported CNBC.