Children’s apparel retailer Gymboree to shutter 350 stores in US
Retail industry news : Gymboree Corporation, an American children’s apparel retailer, has announced its decision to shut down business at about 350 of its stores to channelize its financial resources on potentially profitable locations.
According to the latest apparel retail news, the stores closure from the American clothing retailer is in accordance of a court-supervised financial restructuring after it had filed for bankruptcy last month.
Following a comprehensive review of its retail footprint, Gymboree said that the closed stores are primarily going to be the ones selling the Gymboree and Crazy 8 clothing brands.
Gymboree expects the subsequent reduced store strength to help it to enhance the profitability of its apparel retail business. The store closing sales at the impacted Gymboree locations are set to commence from 18 July.
Daniel Griesemer, president and CEO of the apparel retail company commenting on the Gymboree store closings said: “Right-sizing our store footprint is a central part of our efforts to ensure Gymboree emerges from this restructuring process as a stronger and more competitive organization, with greater financial flexibility to invest in our future.
“Importantly, we will continue to operate a majority of our stores and will continue to deliver quality merchandise and superior service to our customers at our Gymboree, Janie and Jack and Crazy 8 brands.”
Gymboree bankruptcy was filed along with the signing of a restructuring support agreement by the US apparel retailer with a majority of its lenders. The retailer went ahead with the decision to get the backing of key stakeholders in the company to conduct a financial restructuring and recapitalization process with an objective to cut down its debt by at least USD 900 million.
Until recently, Gymboree had 1,300 stores out of which 582 are Gymboree stores, 172 are Gymboree Outlet stores, 149 are Janie and Jack shops, and 378 are Crazy 8 stores and. Gymboree stores can also be found across Canada and in Peurto Rico.
Gymboree is owned by private equity firm Bain Capital which bought the American apparel retail company for $1.7 billion in 2010.