polo houston Gymboree clothing chain could soon file for bankruptcy
Another struggling retailer may be seeking bankruptcy protection.
Fortune, Bloomberg and other media outlets report Gymboree, a children’s clothing chain, may be preparing to file for bankruptcy as the company faces an interest payment on its debt June 1.
Bloomberg said Gymboree is “seeking to reorganize its debt load and may transfer control to its leaders.” The company has not publicly commented on its plans or whether bankruptcy is in the future.
In its most recent earnings report, Gymboree comparable sales (including online sales) decreased 5 percent during the second quarter of fiscal 2017 compared to the fourth quarter of fiscal 2015. Net loss for the second quarter was $324.9 million.
As of Jan. 28, 2017,
the company had 1,291 locations, which includes 586 Gymboree stores, 174 Gymboree Outlet stores, 149 Janie and Jack shops and 382 Crazy 8 stores. Gymboree has multiple stores throughout Alabama.
It’s unclear at this time if any Gymboree locations will shut down if the company files for bankruptcy.
Gymboree is in a state of transition after CEO Mark Breitbard announced in January he would step down from his role and become chairman of the company’s Board of Directors.
“I have given serious thought to the evolving needs of The Gymboree Corporation as an organization, and I believe this is the right time for the Board of Directors to identify a new CEO to lead the Company forward as we continue to focus on the strategic plans for our brands,
” Breitbard said.