Months ago, the news emerged that popular children’s clothing store Gymboree was on the brink of their downfall. Now, reports have emerged claiming that Gymboree is getting ready to close their stores for good.
According to new reports, Gymboree is expected to file for bankruptcy protection this week. In addition, reports have emerged that the mega-popular clothing chain will be closing all 900 of their stores in the coming days.
The brand not only includes Gymboree locations, but also Janie and Jack and Crazy 8.
According to the Wall Street Journal, this will be the second time in the last two years that the retailer is dealing with bankruptcy issues. In June 2017 the company filed for bankruptcy for the first time and closed almost 400 stores.
When the brand first began experiencing issues in 2017, they had 1,281 locations nationwide and more than 11,000 employees. At this point in time, Gymboree has around 900 locations.
According to CNBC, the company was dealing with an enormous amount of debt in 2017 when they first ran into trouble. They had over $1 billion in debt, in part due to a leveraged buyout by Bain Capital Partners in 2010.
After getting rid of $900 million in debt, things were looking promising for the company. CNBC noted that Gymboree was one of the only companies that year that seemed to make a sustainable return after dealing with bankruptcy. Now, however, that has proven to be false.
Beyond their clothing lines, Gymboree Group used to be involved with other children’s activities as well. They owned Gymboree Play & Music, dedicated to development play, music, and art classes. However, they sold that portion of their business in 2016.
What do you think about this? Did you see this coming? Let us know your thoughts. In other recent news, a legendary Christian singer just said a tear-filled goodbye to his wife of 65 years. Please keep him in your prayers during this time.