Children’s clothing retailer Gymboree Group Inc filed for Chapter 11 bankruptcy protection, the second time in almost two years, and said on Wednesday it will close more than 800 Gymboree and Crazy 8 stores.
The San Francisco-based company said it will also sell its high-end line, Janie and Jack, as well as its intellectual property and online platform.
The company’s Canadian arm, Gymboree Inc, also intends to seek bankruptcy protection, it said.
Gymboree is the second U.S. retailer to file for bankruptcy on Wednesday. Earlier, Shopko Stores, a general merchandise store operator, filed a voluntary petition in Nebraska.
More than 20 U.S. retailers, including Sears Holdings Corp and Toys R US, filed for bankruptcy since the start of 2017, succumbing to the onslaught of fierce e-commerce competition from companies like Amazon Inc.
Gymboree, which started making children’s clothing more than 30 years ago, operates about 540 Gymboree stores and outlets in the United States and Canada. It also has about 265 stores across the United States under the ‘Crazy 8’ brand and 139 shops under ‘Janie and Jack’.
Gymboree Group listed assets in the range of $100 million to $500 million and liabilities of $50 million to $100 million, its court filing showed.
Gymboree earlier filed for bankruptcy protection in June 2017 and was one of the few brick-and-mortar retailers that managed to escape liquidation in a wave of bankruptcies that swept the sector.
The company said it signed an asset purchase deal with Special Situations Investing Group Inc (SSIG), an affiliate of Goldman Sachs & Co LLC, and SSIG will serve as the so called “stalking-horse” bidder in the sale of Janie and Jack.
Gymboree has received a commitment for USD 30 million debtor-in-possession financing from Goldman Sachs Specialty Lending Holdings Inc and SSIG.
Gymboree, including all its U.S. subsidiaries, filed the petition in the U.S. Bankruptcy Court for the Eastern District of Virginia, it said. Its Canadian arm also intends to seek bankruptcy protection in the Ontario Superior Court of Justice.