Gymboree could file for second bankruptcy this week
today Jan 16, 2019
Children’s clothing retailer Gymboree Group Inc. could file for its second bankruptcy in less than two years this week, and announce plans to close all 900 of its stores, according to people familiar with the matter.
In an anonymous statement to the Wall Street Journal, the source said these potential closings would be distributed between the retailer's Gymboree, Janie and Jack and Crazy 8 brands, while the retailer tries to sell its Janie and Jack brand.
The retailer first filed for Chapter 11 in June of 2017, reporting $755.5 million in assets and $1.37 billion in debt. As part of the restructuring that followed, Gymboree’s lenders lent $35 million to finance the company’s operations and agreed to invest $80 million when the company emerged from bankruptcy. The retailer also received an $85 million new term loan from Goldman Sachs and a $200 million revolving credit facility from Bank of America Merrill Lynch and Citizens.
This anticipated filing follows Gymboree's December 2018 announcement that it was exploring plans to shutter all its Crazy 8 stores and reduce the retail footprint of its Gymboree label in 2019.
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