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Gymboree to close 350 stores in US

Published 14 July 2017

US-based children's apparel retailer Gymboree will close about 350 stores as part of a court-supervised financial restructuring to focus its resources on profitable locations.

The closures following an evaluation of its retail footprint will be primarily related to stores selling the Gymboree and Crazy 8 brands.

Gymboree says that the reduced store base will help it to boost the profitability of its business.

The clothing retailer has engaged Great American Group and Tiger Group to help it in handling the closing sales at its Gymboree, Crazy 8 stores and Gymboree Outlet stores.

It has notified that the closing sales at the affected stores are slated to start on 18 July.

Gymboree president and CEO Daniel Griesemer said: “Right-sizing our store footprint is a central part of our efforts to ensure Gymboree emerges from this restructuring process as a stronger and more competitive organization, with greater financial flexibility to invest in our future.

“Importantly, we will continue to operate a majority of our stores and will continue to deliver quality merchandise and superior service to our customers at our Gymboree, Janie and Jack and Crazy 8 brands.”

Last month, Gymboree entered into a restructuring support agreement with most of its lenders while also filing for bankruptcy. It was signed by the retailer to get support of important stakeholders to carry out a financial restructuring and recapitalization process aimed at reducing its debt by more than $900m.

As of this April, Gymboree operated nearly 1,300 stores which include 582 Gymboree stores, 172 Gymboree Outlet stores, 378 Crazy 8 stores and 149 Janie and Jack shops. It also has 49 stores in Canada and two stores in Peurto Rico.


Image: A Gymboree store in the Scarborough Town Centre in Scarborough, Canada. Photo: courtesy of GTD Aquitaine/Commons.Wikimedia.org.