Second Bankruptcy Spells the End for Gymboree
Gymboree Plans on Closing All Arizona Stores
The signs are posted in the stores already as Gymboree, the San-Francisco based major children’s clothing retail store, is reportedly filing Chapter 11 bankruptcy. Additionally, the retail giant will close all 800 of it’s stores including those in Phoenix, Tucson, Mesa, and throughout the valley.
With over one billion dollars of debt, Gymboree is expected to not only file for bankruptcy in the past 2 years, but this 2nd bankruptcy protection, but this 2019 bankruptcy should force Gymboree to close all of it’s stores.
Gymboree has filed for bankruptcy protection before. In 2017, Gymboree filed for bankruptcy protection which led to the closing of 350 stores. Now the company has around 900 retail stores in the U.S. and Canada operating under the three brands. The 2017 bankruptcy filing allowed the company to re-organize it’s debt. The hope was that this debt reorganization would allow the company to make a comeback and not only survive but thrive. It appears the first bankruptcy is going to end up as a failure.
Mesa Gymboree to Close as Company Files for Bankruptcy
The children’s clothing retailer filed for bankruptcy for the second time in less than two years earlier this week. This bankruptcy will bring about the end of its flagship brand. Many stores, once staples in malls and strip malls alike, are facing a similar fate. The on-line presence of Amazon, Walmart Delivery, and even Ebay have forced brick and mortar stores out of business.
Gymboree Group after filing bankruptcy, said it plans to start closing all of its Gymboree and Crazy 8 branded stores, according to the filing. Thus, about 800 stores will soon close.
A report from The Wall Street Journal states that the company will file bankruptcy in order to liquidate Gymboree, Crazy 8, and Janie and Jack stores. The Janie and Jack stores may be saved if a buyer is found by the company for the brand. Currently, approximately 139 Janie and Jack stores are in operation across the nation.
Initially, Gymboree was founded in the 1970’s. Initially, the company offered activity and music classes. Later, in the 1980’s they launched a chain of clothing stores. The clothing stores are what they are most noted. In 2016, the Gymboree Play & Music became a standalone brand owned by an education company. The bankruptcy filed earlier this week, according to representatives, does not include these franchised Play & Music centers.
Thus, with many of our favorite stores and retailers going out of business and filing bankruptcy, it becomes obvious that financial hardship can hit even some of the most established brands. Life for individuals can throw us tough times that may lead to bankruptcy or other tough financial times. Debt relief and a fresh start is only a call away. Contact an Arizona debt relief lawyer and find out the many options available to you.