Network of children’s clothing Gymboree on Sunday it applied for protection from bankruptcy under article 11 of the bankruptcy Code of the United States. The management of the network still hopes to overcome the crisis by reducing debt and closing hundreds of stores across the country. Total according to statement is scheduled to close 375-450 1 from 281 stores. This means that in the coming year, thousands of employees will be without work.
Bankruptcy network is not unexpected. Rather, it was predictable. In recent months, Gymboree refused to pay certain invoices, causing the wrath of the creditors. Now the company intends to reduce its debt, amounting to $ 1.4 billion, reducing the number of jobs and shops.
Causes of bankruptcy Gymboree are no different from the causes of bankruptcy for certain retail retailers. The company was not adapted to the new realities of the market and unable to compete with the online marketplaces by type Amazon. And that’s not including competition in the sale of children’s clothing. Among other things, the company very long and hard to introduce innovations. For example, the possibility of electronic ordering appeared here just a few months ago, as well as equipping employees with tools to more effectively and rapidly.
However, the company does not lose optimism. The management stated that already held talks with creditors and intends to restructure the debt. This is really a good chance for the network to remain on the market, but will lead to the desired result – not yet known.
