Gymboree, a popular Children’s clothing store, filed for Chapter 11 bankruptcy in June of 2017 in hopes of decreasing their massive amount of debt, reports USA Today. The company currently owes over $1 billion to creditors.
Gymboree has over 1,200 retail locations and 650 ‘play and music centers’ across the globe. In addition to filing for bankruptcy, between 375 and 450 retail stores will close.
More than 11,000 people are employed by Gymboree, majority of which are hourly. As of right now, it is unsure exactly which locations will close down.
The CEO, Daniel Griesemer, released the following statement:
"We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape, with the right size store footprint and greater financial flexibility to invest in Gymboree’s long-term growth."
Gymboree joins many other retailers facing the same issue: the growth of e-commerce. Many consumer prefer the online convenience and flexibility. Other stores beginning closure processes recently include Rue21, Payless Shoes, and Sears.
Does your family shop here?