Add Gymboree to the growing list of retailers that have gone bust in recent years. For a second time in as many years, the children's clothing retailer late Wednesday filed for Chapter 11 bankruptcy protection.
The company will start shutting its 540 Gymboree stores and outlets in the U.S. and Canada, along with 265 Crazy 8 stores in the U.S. It will continue to run its high-end kids apparel chain, Janie and Jack, which has 139 stores. An affiliate of Goldman Sachs has agreed to buy the business, setting the floor for an auction to draw the best offer or highest bidder for the business.
"We are saddened and highly disappointed that we must move ahead with a wind-down of 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," Shaz Kahng, appointed in November 2018 as Gymboree Group CEO, said in a news release issued by the San Francisco-based company.
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 firstand closed 375 of 1,280 stores.
The explosion in online shopping in recent years has slammed brick-and-mortar stores, with a slew of major retailers declaring bankruptcy.
Separately, investor and Sears Chairman Eddie.
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.