US-based children’s clothing retail chain Gymboree Group is reportedly expected to file for bankruptcy protection this week and close the majority of its remaining 900 outlets.
A person familiar with the situation told CNBC that if it files for bankruptcy, it would be its second in 18 months.
Gymboree is likely to close most of Gymboree and Crazy 8 locations, reported abc7chicago.com
Reporting first on Gymboree’s bankruptcy protection plans, the Wall Street Journal mentions that the retailer may sell off its premium Janie and Jack chain.
In July 2017, Gymboree closed down 350 outlets out of the 1,281 stores across the country. It had then employed 11,000 people.
Several of its outlets are located in shopping malls, which have seen a large decline in footfall. Many of the malls across the country lost outlets of retail chains such as Sears and JCPenney.
Last December, it was reported that the retailer initiated a strategic review of its Gymboree, Janie and Jack, and Crazy 8 brands, which may include sales at the brand level.
Last November, it was reported that the children’s apparel retail chain was considering the closure of more than 50% of its 900 stores.
It appointed consulting firm Berkley Research Group to explore several options, including store closures and a second bankruptcy filing, Reuters reported, citing undisclosed sources.
The latest news of Gymboree’s troubles come as retailer Sears is exploring options to prevent liquidation after securing bankruptcy protection last October.
Since the beginning of 2017, more than 20 retailers such as Sears Holdings have filed for bankruptcy protection, reported Reuters.