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It looks likeGymboreecould be the next brick-and-mortar retail chain on the chopping block.
According to aCNBC report, the well-known children’s clothing outfit could file for bankruptcy protection as early as within the next week, and close most of its approximately 900 stores.
A source told CNBC that the Gymboree Group brands affected would be Gymboree itself as well as potentially the group’s Crazy 8 label and popularhigh-end Janie and Jackbrand. (Gymboree Play & Music will not be affected.)
Gymboree.Spencer Platt/Getty Images
The Wall Street Journalwas the first to report the news and, according to one source who spoke to the outlet, Janie and Jack could potentially be liquidated if no buyer steps up, while Gymboree is expected to liquidate.
Bankruptcy protection would give the company a loan to tide it over through the proceedings surrounding bankruptcy and while they search for a buyer,said theWSJ, while a return to court this month seems likely.
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The event would mark the group’s second bankruptcy-related filing in less than as many years.
In June 2017, Gymboree filed for bankruptcy protection but managed to eliminate $900 million of debt,theWSJreported, and stay afloat after making the decision to pass control of the company to lenders.
Up until that point, Gymboree counted almost 1,300 stores among its ranks but closed 375 of those following the 2017 filing, leaving the roughly 900 establishments that still remain today.
source: people.com
