The network of children’s clothing stores Gymboree went bankrupt and next week will apply for debt restructuring. Gymboree Group, which includes stores Crazy 8 and Janie&Jack, close all 900 branches in the U.S. and Canada. About 11 thousand people will lose their jobs. The network has lost hundreds of millions of dollars over the past few years and not reported annual profit since 2011.
#Gymboree to file for #bankruptcy protection as early as this week, could shutter majority of 900 stores https://t.co/TmZNKhfWyF. #Ouch #anotheronebitesthedust pic.twitter.com/ue6kbUa2u1
— Kate Gamble (@PRWowFactor) January 15, 2019
This is not the first time the network was on the verge of ruin. At the time of bankruptcy in 2017, Gymboree had a debt of $1 billion In 2010 due to the loan, bought a private equity company Bain Capital Partners and lost about $900 million from its budget. In 2017, Gymboree had to close 1280 380 of its stores in an attempt to restructure a company to increase revenue and debt repayment.
Next year, in the summer of 2018, Gymboree seemed to have found a way to improve the progress of their Affairs. They started to sell clothes and accessories that could easily combine with each other to find the right outfit. Early in their shops you can find only ready sets of clothes. The company also improved the design of their retail stores, updated its online shop and has launched a mobile app for shopping.
But apparently that wasn’t enough to save the network from bankruptcy. Gymboree Group does not comment on the bankruptcy news. It is not clear when exactly they will close their shops. Janie&Jack can still be saved, if this chain of stores someone buys.
Gymboree closure will not affect the network Gymboree Play & Music, which from 2016 operates as a separate legal entity owned by Gymboree Global Education Group. Now Play & Music quite successfully conducting music classes for kids in more than 800 cities in the U.S. and abroad.
