US-based childrenswear retailer Gymboree has filed for Chapter 11 bankruptcy protection in order to reduce debts by more than $900m.
The company has signed a restructuring support agreement with a majority of its term loan lenders to achieve financial restructuring and recapitalisation.
It made filings with the US Bankruptcy Court for the Eastern District of Virginia.
Gymboree president and CEO Daniel Griesemer said: “The steps we are taking today allow the company to definitively address its debt and enable the management team to turn its full focus toward executing our key strategies, including our product, brand and omnichannel initiatives.
“The support of our lenders and their new financing commitment underscores their confidence in the company. We have three great brands, strong operations and dedicated employees, and throughout this process, we will continue to deliver superior service to our customers and put them at the centre of all we do.”
Gymboree said it plans to continue to operate its business but will close at least 375 stores, according to media sources.
Its remaining stores are expected to operate as usual during financial restructuring.
Gymboree has received $308.5m in funding to continue meeting its financial obligations throughout the Chapter 11 case.
As of 29 April, Gymboree operated a total of 1,281 retail stores across the US, Canada and Puerto Rico, as well as a number of online stores.
Image: A Gymboree retail store. Photo: courtesy of InaHuang via Wikipedia.