June 13, 2017
San Francisco-based Gymboree filed for Chapter 11 bankruptcy protection, and plans to close up to 450 stores in an effort to trim costs. The children’s clothing retailer plans to remain in business while it reorganizes, and hopes to secure approval of that plan later this fall.
The reorganization will focus on right-sizing Gymboree’s store footprint, and providing it greater financial flexibility, say company executives. The retailer has 1,281 stores and employs more than 11,000 people, though it did not identify which stores would be closing.
The filing was not unexpected after Gymboree quit paying some of its bills in recent months. The company is seeking to cut $1 billion of its $1.4 billion in debt.
Collectively, Simon Property Group and GGP control 35% of Gymboree’s U.S. real estate space.
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