Gymboree on its way to bankruptcy, again: reports

How brick-and-mortar retailers are competing

Gymboree is reportedly set to join a long list of retailers to declare bankruptcy. And, in the children’s clothing retailer’s case, it would be for a second time in as many years.

Gymboree Group is expected to file for Chapter 11 bankruptcy protection as soon as this week, and plans to close nearly all of its roughly 900 stores, according to the Wall Street Journal and CNBC, both of which cited people familiar with the matter. The retailer is also trying to sell its high-end kids apparel chain, Janie and Jack, which has 139 stores, one source told CNBC.

Gymboree did not immediately return a request for comment.

The retailer in early December said it was reviewing its strategic options and intended to close its Crazy 8 store locations and significantly reduce the number of Gymboree locations in 2019.

Gymboree first filed for bankruptcy in June 2017, and quickly closed 375 of 1,280 stores.

E-commerce impact

The explosion in online shopping in recent years has slammed brick-and-mortar stores, with a slew of major retailers declaring bankruptcy.

Former Sears exec says retailer has been on “death spiral” for decade

Separately, the outcome of an auction being held Monday in New York will determine whether investor and Sears Chairman Eddie Lampert succeeds in his efforts at keeping 142 Sears stores running, if only for awhile.

In another illustration of the troubled times for retailers, Chico’s on Friday said it close 250 stores in the U.S. during a three-year period. As late 2018, the women’s clothing retailer operated 1,431 stores in the U.S. and Canada.

The parent company of Mattress Warehouse and Sleep Outfitters filed for bankruptcy protection on Friday, following the same move in October by Mattress Firm, which has since closed hundreds of its more than 3,200 stores.

Categories: Business

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