Friday , January 27 2023

Kids retailer Gymboree files for bankruptcy protection, all 49 Canadian stores to close


Gymboree filed a bankruptcy petition for the second time in a few years, but this time the baby clothing seller will begin to wind up operations forever.

San Francisco said on Wednesday it would close all of its stores, Gymboree and Crazy 8, and try to sell its Janie and Jack business, intellectual property and online business.

"The company has worked diligently over the past few months to explore the options for the Gymboree group and its brands and we are sad and very disappointed that we must go ahead with a decrease in Gymboree and Crazy 8," said Shaz Kahng statement.

Gymboree, who began offering classes for mothers and their children in 1976, runs 380 Gymboree stores in North America, of which 49 are in Canada. When he first sought Chapter 11 for Bankruptcy Protection in June 2017, he had more than three times more stores.

If the officials approve the process, all scraps of stores will be closed.

In the years after the recession, the company suffered most of the mall retail stores. The steep decline in mall traffic and online change have devastated many traditional traders. This week, the 132-year-old Sears chain has avoided liquidation when billionaire Eddie Lampert has obtained approval for a $ 5 billion plan to maintain its business.

Celebrations, the most important time of year in the retail business, were not as robust as most had expected. Macy suffered the worst trading day after making holiday numbers, and Kohl reported a dramatic slowdown in a year ago. Macy's is considered a barometer of spending in malls.

Before the opening bell on Thursday, retailers were among the weakest performers of the S & P 500.

Gymboree was bought by private equity firm Bain Capital for $ 1.8 billion in 2010 and was taken privately.

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