Gymboree preparing to file for bankruptcy and close all 900 of its stores 

Gymboree, the once popular children’s clothing store, is preparing for bankruptcy and will soon start closing its 900 remaining stores. 

 The Gymboree Group – which runs the store, along with both Janie & Jack and Crazy 8 – first closed a portion of its stores, two years ago.

Gymboree had announced, in December, that it planned to bring about a strategic review of its three brand. They suggested then that there could be a sale or another transaction, the Washington Post reports. 

The clothing brand was expected to reappear in court in January and was hoping to procure a loan that would carry it through bankruptcy proceedings. 

A source familiar with the situation said that while Janie and Jack could face liquidation if it isn’t bought, while Gymboree will be liquidated.

Janie and Jack has 139 stores across the country. 

Gymboree had been struggling from a $1billion debt they had took on during a leveraged buyout by Bain Capital Private Equity LP in 2010. They had first filed for bankruptcy protection in June 2017, as a result.

Slashing $900million in debt, Gymboree turned over control to Carriage House Captial Advisors LLC, Bridgade Capital Management LP and other lenders.  

The company had 1,280 stores at the time of its first bankruptcy but their remaining stores continued to present an issue. 

While bankruptcy draws closer, Gymboree has advertised significant discounts in anticipation.

Gymboree has struggled, like many retailers, entering into the online space and the dominating world of e-commerce. 

Many have had to go into bankruptcy and ultimately go out of business, as seen with Toys’R’Us