Gymboree Expected to Close Stores as Part of Restructuring
Posted on June 19, 2017
Gymboree has announced it has filed for Chapter 11 bankruptcy protection. The specialty children's retailer also announced it has secured $35 million in financing to support its operations during the restructuring period. Gymboree also revealed that Andrew North is stepping down as CFO for personal reasons. Liyuan Woo,Director at AlixPartners, has been appointed as the Interim CFO.
Gymboree did not specifically address store closing in its bankruptcy announcement. A CNN/Money says up to 375 stores could be closed. USA Today is more pessimistic, which an headline that says up to 450 stores could be shuttered.
Gymboree says it had 1,281 total stores as of April 29, 2017. These include 582 Gymboree stores, 172 Gymboree Outlet stores, 149 Janie and Jack shops and 378 Crazy 8 stores. Most of its stores are located in the U.S. and Canada.
Gymboree President and CEO Daniel Griesemer says in the announcement, "The steps we are taking today allow the Company to definitively address its debt and enable the management team to turn its full focus toward executing our key strategies, including our Product, Brand and Omni-channel initiatives. The support of our lenders and their new financing commitment underscores their confidence in the Company. We have three great brands, strong operations and dedicated employees, and throughout this process, we will continue to deliver superior service to our customers and put them at the center of all we do. We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today's evolving retail landscape, with the right size store footprint and greater financial flexibility to invest in Gymboree's long-term growth."