Gymboree is shutting more than 800 stores as it files for bankruptcy
- Gymboree is shutting more than 800 stores after filing for bankruptcy protection, the company said Wednesday.
- The company will close all stores under the Gymboree and Crazy 8 banners and pursue a going-concern sale for its Janie and Jack stores.
- Gymboree could stop accepting customers gift cards in 30 days, and it has immediately discontinued its GymBucks and Gymboree Rewards programs.
- Gymboree previously filed for bankruptcy as recently as June 2017 and closed nearly 400 stores in the process.
The children's clothing retailer will close all stores under its Gymboree and Crazy 8 banners and pursue a going-concern sale for its Janie and Jack stores and the intellectual property and online platform for Gymboree.
The company has about 140 Janie and Jack stores.
Gymboree has asked the US bankruptcy court for authorization to continue honoring customer gift cards for another 30 days. The company has immediately discontinued its GymBucks and Gymboree Rewards programs.
Gymboree Group CEO Shaz Kahng said the company is "highly disappointed" about winding down the Gymboree and Crazy 8 businesses. "At the same time, we are focused on using this process to preserve the Janie and Jack business - a strong brand that is poised to grow - by pursuing a sale of the business as a going concern," Kahng said in a statement. "As we move ahead, we are working to minimize the impact on our employees, customers, vendors and other stakeholders."
Gymboree has suffered sales declines for years.
The company previously filed for bankruptcy in June 2017 and closed nearly 400 stores in the process. At the time of the filing, it had 1,281 locations and employed more than 11,000 workers.
A Gymboree liquidation will not impact Gymboree Play & Music, a company with more than 800 locations that was sold in 2016. Gymboree Play & Music offers music, art, and play classes for babies and toddlers.